This proposal, if approved, will place the following on-chain remark:

`The community of the HydraDX Protocol authorizes the HydraDX Council to conduct the following transfers using a part of the HydraDX Protocol Owned Liquidity which was accumulated during the HDX LBP event:`
`-- transfer 450,000 DAI to 0xA4a6B5f005cBd2eD38f49ac496d86d3528C7a1aa as a reward for the whitehat who helped the HydraDX Protocol identify a critical vulnerability in the Omnipool;`
`-- transfer 45,000 DAI to 0x2BC5fFc5De1a83a9e4cDDfA138bAEd516D70414b as a commission for the bug bounty platform Immunefi.`

These transactions are related to the Omnipool vulnerability which was disclosed to us, as described in the first [Security Update](https://hydradx.substack.com/p/security-update-1). The report was submitted under our [Immunefi bug bounty program](https://immunefi.com/bounty/hydradx/) which had previously been approved by HDX token holders and included in our agreed [spending framework](https://docs.hydradx.io/spending_fw#bug-bounties).

Under the above-mentioned framework, the whitehat hacker would be entitled to a bug bounty of $590,000 (10% of the Omnipool TVL), to be paid out in HDX. However, at the current valuation, this would amount to ~47% of the HDX treasury holdings. Against this background, the Galactic Council team negotiated with the whitehat a discounted payment in DAI (450,000 DAI).

The HydraDX Protocol would like to thank the whitehat for finding and disclosing this vulnerability in a timely manner which allowed the Protocol to continue its operations without any major disruptions.


#69 Whitehat Bounty Payment