Led by Areta, the Uniswap Foundation Security Fund is designed to enhance the safety and integrity of the Uniswap v4 hook developer community by improving access to security audits.

The introduction of Uniswap v4 hooks has enabled new AMM functionalities like dynamic fees and custom liquidity curves with real-world impact. However, as they have created new opportunities for developers, they have also introduced new challenges. Hooks require advanced security audits to ensure their reliability and security before deployment. To improve v4 builder access to high quality audits, the Uniswap Foundation is allocating a $1,200,000 USD grant to Areta for the Uniswap Foundation Security Fund to create a competitive marketplace for audits and security services.

The Uniswap Foundation Security Fund is designed to transform how projects building Uniswap v4 hooks access security audits. By creating a marketplace where vetted providers compete, the audit process is streamlined, and overall costs are projected to be reduced: making security audits accessible even to smaller, bootstrapped projects. This marketplace not only invites healthy competition but also ensures that participating audit providers meet the highest standards of quality. The marketplace will enable shortlisted projects to obtain audit quotes from whitelisted providers, ensuring transparency and competitive pricing. Projects will then select their preferred provider, with the Uniswap Foundation subsidizing up to the full cost of the audit for selected projects that meet the criteria.

Key Features of the Uniswap Foundation Security Fund:

• Simplified Audit Process: Facilitates the process of finding and engaging with top-tier security audit firms.

• Standardized Provider Pool: Enables comparability of offers and ensures transparent, competitive pricing for the Uniswap Foundation community.

• Subsidized Audit Costs: Offers subsidies up to 100% of audit fees, democratizing access to essential security services.

The rollout of the Uniswap Foundation Security Fund by Areta is structured over a six-month timeline with clearly defined phases and deliverables:

• Whitelisting of Security Audit Providers (2 months): Areta will identify and whitelist security audit providers, ultimately forming a vetted pool of high-caliber security service providers.

• Run Application Process and Management of Subsidy Fund (4 months): Areta will manage the application processes for both security service providers and projects seeking subsidies. This phase includes announcing the program start, reviewing applications, providing regular community updates and facilitating the matching process between projects and auditors. It culminates in the tracking of audits and production of a detailed outcome report that assesses the impact and efficiency of the audit process.

Areta is a crypto-native investment banking and strategic governance firm with deep experience in executing complex financial transactions and helping foundations and DAOs grow decentralized governance structures. The Areta team brings extensive legal, commercial, and technical expertise to security audit marketplace management, with deep knowledge of Uniswap v4 hooks.

Bernard Schmid, Founding Partner of Areta, shares his enthusiasm: "Areta is thrilled to receive this grant from the Uniswap Foundation to support builders within the Uniswap community. Our commitment to transforming professional services in the crypto space aligns with Uniswap’s pioneering spirit in DeFi innovation.

"Dennis Rasch, VP of Strategic Governance at Areta, adds, "We take away the pain from the projects to do the diligence. They have peace of mind to know the auditor they’ve chosen is top quality.”

This grant represents Uniswap Foundation’s commitment to ensuring that innovations on the Uniswap Protocol are as secure as they are revolutionary. For more information and to register interest in the subsidy, please visit Areta's application portal.

Security Service Providers: Providers interested in joining can apply starting October 25, 2024. Applications will be thoroughly vetted to ensure only the highest quality services are offered.

Projects Seeking Subsidies: Projects can apply for audit cost subsidies through a separate application process, details of which will be announced shortly. Eligibility will be determined based on metrics like potential TVL and impact on the Uniswap Protocol.