Hello,

This is a vote to decide wether to allocate ANGLE tokens from the DAO to bootstrap Hats.finance bug bounty, and if yes how much. The temperature check on the governance forum showed no opposition to the proposal.

Voting options will be:

• Deposit 1M ANGLE into Hats bug bounty
• Deposit 500K ANGLE into Hats bug bounty
• Don't open any bug bounty with Hats

Context

Introducing Hats.finance

Hats.finance 2 is a permissionless bug bounty solution. Every DAO token holder can deposit tokens in a vault, which will be used to pay potential white hat hackers that find vulnerabilities in any contracts in scope. Users depositing governance tokens can withdraw them with a 7 days delay.

Pros and cons

The advantage for protocols is that their bug bounties can be financed with the protocol governance token, and by everyone from the community. Additionally, hackers submitting but bounties can see exactly how much tokens they will receive, if the severity of the bug bounty is agreed upon.

If a bug bounty is submitted and found to be valid, a share of the tokens deposited will be paid to the hacker depending on the severity of vulnerability found.

In exchange, depositors will get a share of the $HATS distribution when it starts. In the meantime, $HATS tokens will be distributed retroactively similarly to OP from Optimism.

Angle & Hats

Some contributors have been in contact with the Hats team for some time now, and we think it would be interesting for Angle to open a bug bounty. To do so, the DAO needs to deposit an initial quantity of ANGLE tokens.

I propose to deposit 500k or 1M ANGLE (~$22,500 - $45,000 at current prices) to kick off the vault. This could add a new, cheaper bug bounty for Angle, and position the protocol as an early supporter of Hats.

Implementation requirements

I have submitted all contracts to be included in the bug bounty to the Hats team. We created a 2/2 multisig with @Picodes and @tuta to act as committee members to accept or deny the vulnerabilities submitted. If approved, we would need to send the ANGLE tokens from the DAO to the Angle vault on Hats to open the bug bounty.