Sherlock is excited to announce its latest audit of Hook Protocol, and will support their launch on mainnet by providing Hook users with up to $10M of smart contract coverage.
This coverage will provide recourse for Hook Protocol users who write covered calls on their NFTs.
Sherlock is a risk management platform built to help protect crypto end-users by uniquely aligning incentives with protocol teams by auditing their smart contracts and providing recourse through smart contract and bug bounty coverage in the event of an exploit.
Hook is an oracle-free, on-chain option protocol for non-fungible tokens (NFTs). Unlike many popular approaches to NFT DeFi, Hook does not sacrifice the non-fungible nature of NFTs by requiring that they are converted into fungible tokens.
The Hook team has worked closely with Sherlock ahead of their launch on all aspects of security, to bring the strongest peace of mind to all participants in their ecosystem. Sherlock completed a full audit and fix review of Hook’s contracts, enabling them to go live with $10M of smart contract coverage and a $1M bug bounty hosted through Immunifi, which is fully paid for by Sherlock.
Sherlock’s coverage-backed audit approach aligns incentives by matching Sherlock’s exposure to exploit risks faced by Hook’s users. Sherlock’s close partnership with Hook’s development allows the team to benefit from a more continuous audit cycle as future upgrades & updates arise. This type of partnership allows Hook to continue in their development, without being bottlenecked by auditor availability.
Audits from Sherlock + fix reviews to ensure proper implementation of updates
$1M Immunefi bug bounty provided by Sherlock
$10M in smart contract coverage at launch
Continued collaboration with Sherlock during the development cycle to review updates and maintain coverage
Development best practices in test coverage, peer reviews, and code complexity
Hook at a Glance
Hook is an oracle-free, Ethereum-based option protocol for non-fungible tokens (NFTs), built with EVM compatibility in mind. Unlike many popular approaches to NFT DeFi, Hook does not sacrifice the non-fungible nature of NFTs by requiring that they are converted into fungible tokens.
The Core of How Hook Works:
First, any NFT holder (the writer) can transfer their NFT into Hook, while specifying a specific strike price and maturity. Hook will hold the original NFT and mint a new option NFT representing the option as a bearer token, which allows the holder of the option NFT to be the owner of the option until expiration.
The writer can then earn a premium by selling the option NFT. The sale can occur on any marketplace which supports the sale of ERC-721, including the marketplace hosted by Hook.
At this point, anyone can purchase the option NFT from the writer, providing them with upside exposure to the underlying original NFT.
Before the option expires, Hook automatically starts a settlement auction for the original NFT.
If the highest bid in this auction is less than or equal to the strike price, then the writer retains ownership of the original NFT and keeps the option premium.
If the highest bid is above the strike price (e.g., the original NFT appreciated during the option period to above the strike), the writer earns the strike price and option premium. The original NFT is concurrently sold to the highest bidder, and the option buyer earns the price spread (difference between the highest bid and the strike price).
Hook’s NFT Marketplace
In order to create a consistent venue for trades and liquidity, Hook plans on hosting an order book where people can place orders for specific option NFTs or option NFTs with certain characteristics. These orders will be fulfilled by the excellent suite of exchange smart contracts hosted by 0x, available on several popular chains.
Follow along on Twitter, Discord, and their Blog
Read more about Hook’s NFT option protocol
Follow along and get involved on Twitter, Discord, and through our website
See how Sherlock works
SherlockSherlock Yield Strategy Bug Bounty Post-Mortem
Sherlock Yield Strategy Bug Bounty Post-MortemNOTE FOR SHERLOCK LIQUIDITY PROVIDERS: This type of bug bounty payout does not impact any of the staking pool, and all staked funds used for Sherlock coverage remain unaffected.OverviewOn July 14th, 2022, GothicShanon89238 reported an issue to Sherlock through Immunefi concerning Sherlock's yield strategy integration with Euler. The issue has since been fixed.No funds were immediately at risk, but the issue could eventually have resulted in a...
SherlockWhat is Sherlock?
TL;DRSherlock is a new type of security solution for protocol teams. Sherlock provides teams with all the tools they need to securely launch decentralized apps:Audits from leading security firms and independent security expertsBug bounty paid for by SherlockSmart contract coverage for on-chain exploitsWith these tools, protocol teams are set up for success and can get back to building. Even further, the users of those protocols can sleep easier knowing there is recourse even if a bug slips th...
SherlockSecurity Expert Guide
This is the quick start guide for security experts interested in competing for $50k+ prize pools in Sherlock’s next-generation audit model.For the full details, check out the Audit section of the Sherlock docs.Good news: If you’ve competed in Code Arena in the past, this experience will be quite familiar. However, there are some differences:Only Medium and High severity bugs are rewardedThe top 10% on Sherlock’s leaderboard are eligible to be Lead Senior Watsons with $10k guaranteed pay per a...
Sherlock is excited to announce its latest audit of Hook Protocol, and will support their launch on mainnet by providing Hook users with up to $10M of smart contract coverage.
This coverage will provide recourse for Hook Protocol users who write covered calls on their NFTs.
Sherlock is a risk management platform built to help protect crypto end-users by uniquely aligning incentives with protocol teams by auditing their smart contracts and providing recourse through smart contract and bug bounty coverage in the event of an exploit.
Hook is an oracle-free, on-chain option protocol for non-fungible tokens (NFTs). Unlike many popular approaches to NFT DeFi, Hook does not sacrifice the non-fungible nature of NFTs by requiring that they are converted into fungible tokens.
The Hook team has worked closely with Sherlock ahead of their launch on all aspects of security, to bring the strongest peace of mind to all participants in their ecosystem. Sherlock completed a full audit and fix review of Hook’s contracts, enabling them to go live with $10M of smart contract coverage and a $1M bug bounty hosted through Immunifi, which is fully paid for by Sherlock.
Sherlock’s coverage-backed audit approach aligns incentives by matching Sherlock’s exposure to exploit risks faced by Hook’s users. Sherlock’s close partnership with Hook’s development allows the team to benefit from a more continuous audit cycle as future upgrades & updates arise. This type of partnership allows Hook to continue in their development, without being bottlenecked by auditor availability.
Audits from Sherlock + fix reviews to ensure proper implementation of updates
$1M Immunefi bug bounty provided by Sherlock
$10M in smart contract coverage at launch
Continued collaboration with Sherlock during the development cycle to review updates and maintain coverage
Development best practices in test coverage, peer reviews, and code complexity
Hook at a Glance
Hook is an oracle-free, Ethereum-based option protocol for non-fungible tokens (NFTs), built with EVM compatibility in mind. Unlike many popular approaches to NFT DeFi, Hook does not sacrifice the non-fungible nature of NFTs by requiring that they are converted into fungible tokens.
The Core of How Hook Works:
First, any NFT holder (the writer) can transfer their NFT into Hook, while specifying a specific strike price and maturity. Hook will hold the original NFT and mint a new option NFT representing the option as a bearer token, which allows the holder of the option NFT to be the owner of the option until expiration.
The writer can then earn a premium by selling the option NFT. The sale can occur on any marketplace which supports the sale of ERC-721, including the marketplace hosted by Hook.
At this point, anyone can purchase the option NFT from the writer, providing them with upside exposure to the underlying original NFT.
Before the option expires, Hook automatically starts a settlement auction for the original NFT.
If the highest bid in this auction is less than or equal to the strike price, then the writer retains ownership of the original NFT and keeps the option premium.
If the highest bid is above the strike price (e.g., the original NFT appreciated during the option period to above the strike), the writer earns the strike price and option premium. The original NFT is concurrently sold to the highest bidder, and the option buyer earns the price spread (difference between the highest bid and the strike price).
Hook’s NFT Marketplace
In order to create a consistent venue for trades and liquidity, Hook plans on hosting an order book where people can place orders for specific option NFTs or option NFTs with certain characteristics. These orders will be fulfilled by the excellent suite of exchange smart contracts hosted by 0x, available on several popular chains.
Follow along on Twitter, Discord, and their Blog
Read more about Hook’s NFT option protocol
Follow along and get involved on Twitter, Discord, and through our website
See how Sherlock works
SherlockSherlock Yield Strategy Bug Bounty Post-Mortem
Sherlock Yield Strategy Bug Bounty Post-MortemNOTE FOR SHERLOCK LIQUIDITY PROVIDERS: This type of bug bounty payout does not impact any of the staking pool, and all staked funds used for Sherlock coverage remain unaffected.OverviewOn July 14th, 2022, GothicShanon89238 reported an issue to Sherlock through Immunefi concerning Sherlock's yield strategy integration with Euler. The issue has since been fixed.No funds were immediately at risk, but the issue could eventually have resulted in a...
SherlockWhat is Sherlock?
TL;DRSherlock is a new type of security solution for protocol teams. Sherlock provides teams with all the tools they need to securely launch decentralized apps:Audits from leading security firms and independent security expertsBug bounty paid for by SherlockSmart contract coverage for on-chain exploitsWith these tools, protocol teams are set up for success and can get back to building. Even further, the users of those protocols can sleep easier knowing there is recourse even if a bug slips th...
SherlockSecurity Expert Guide
This is the quick start guide for security experts interested in competing for $50k+ prize pools in Sherlock’s next-generation audit model.For the full details, check out the Audit section of the Sherlock docs.Good news: If you’ve competed in Code Arena in the past, this experience will be quite familiar. However, there are some differences:Only Medium and High severity bugs are rewardedThe top 10% on Sherlock’s leaderboard are eligible to be Lead Senior Watsons with $10k guaranteed pay per a...
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