👋Intro to MikaLock

MikaLock is an audit marketplace and smart contract coverage protocol built on the Ethereum blockchain. MikaLock works to protect Decentralized Finance (DeFi) users from smart contract exploits with security reviews from top auditors backed by smart contract coverage on the audited contracts.

You can find a brief overview of the MikaLock ecosystem below.

MikaLock Ecosystem

There are 3 main participants in the MikaLock ecosystem:

  1. Protocols

  2. Stakers

Protocols

Protocols come to MikaLock for audits from top independent security experts. MikaLock offers smart contract coverage on any contracts that are reviewed as part of the audit. MikaLock offers coverage primarily on white-hat bounties, which also includes some coverage on black-hat exploits. The coverage is optional, but adding the coverage allows protocols to know that MikaLock has "skin in the game" in terms of auditing the smart contracts. Basically, if the audited smart contracts have a critical bug, MikaLock will likely have to pay out hundreds of thousands of dollars. No other auditor offers this kind of backing for their audits.

Whenever a Critical-severity vulnerability is discovered in a protocol (on an audited contract), MikaLock may pay for the bug bounty cost (minus a deductible). MikaLock's claims process will decide whether or not the vulnerability falls under coverage and should be paid out.

Stakers

Stakers deposit USDC into the staking pools in return for an attractive APY. The APY stakers will receive is made up of 2 streams:

  1. Premiums from protocol customers

  2. Incentive rewards paid in MIKA (MikaLock’s governance token)

In return for these streams, a staker’s funds are at risk of being partially paid out (up to 50%) if a significant covered event (i.e. bug bounty payout) occurs on one of the audited contracts covered by MikaLock. Despite the risk, stakers are incentivized to stake because:

  1. There is an attractive APY to be earned for doing so

  2. MikaLock's audits are some of the best in the space

  3. Each covered protocol is required to have a deductible which can protect stakers against losses

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