Compound Finance
Bounty Range
$1,000 - $1,000,000
external program
Compound Finance
Bounty Range
$1,000 - $1,000,000
external program
Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset. Suppliers (and borrowers) of an asset interact directly with the protocol, earning (and paying) a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.
Each money market is unique to an Ethereum asset (such as Ether, an ERC-20 stablecoin such as DAI, or an ERC-20 utility token such as Augur), and contains a transparent and publicly-inspectable ledger, with a record of all transactions and historical interest rates.
Compound III is an EVM compatible protocol that enables supplying of crypto assets as collateral in order to borrow the base asset. Accounts can also earn interest by supplying the base asset to the protocol.
The initial deployment of Compound III is on Ethereum and the base asset is USDC.
Compound DAO provides rewards in COMP, denominated in USD.
Governance-Run Program
Though Immunefi considers any processes around fixing the bug report to be outside the consideration of payments, it is understood that this needs to be accounted for in a DAO environment. Specifically, fixes may take more time to be implemented, and need to be fully deployed before payouts can be made due to the payment process being more transparent with DAO processes. For example, if a payout process is initiated while a bug still has not been fixed, it may provide enough information for one or more people to find the vulnerability and exploit it. Because of this, payments may be delayed until a discovered bug has been appropriately addressed.
Given the extensive DAO proposal process, all validated bug reports will be grouped into a proposal at the end of each calendar month to reduce the burden on the DAO, as well as to streamline reporting for the bug bounty program. This monthly proposal will go over each bug report due for payout and explain the impacted asset or assets, the severity level, and the actions being taken by the respective people and entities mandated by the DAO.
Immunefi's onchain proposal for Compound's bug bounty program and monthly proposals are sponsored by PGov. PGov's delegate profile and contributions can be found here: https://www.tally.xyz/gov/compound/delegate/0x3fb19771947072629c8eee7995a2ef23b72d4c8a
Smart Contract
For mainnet assets, reward amount is 10% of the funds directly affected up to a maximum of $1,000,000.
Minimum reward to discourage security researchers from withholding a bug report: $50,000
Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.3.
Reward Calculation for Critical Level Reports
For critical smart contract bugs, the reward amount is 10% of the funds directly affected up to a maximum of USD 1,000,000. The calculation of the amount of funds at risk is based on the time and date the bug report is submitted. However, a minimum reward of USD 50,000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.
Repeatable Attack Limitations
If the smart contract where the vulnerability exists can be upgraded or paused, only the initial attack will be considered for a reward. This is because the project can mitigate the risk of further exploitation by upgrading or pausing the component where the vulnerability exists. The reward amount will depend on the severity of the impact and the funds at risk.
For critical repeatable attacks on smart contracts that cannot be upgraded or paused, the project will consider the cumulative impact of the repeatable attacks for a reward. This is because the project cannot prevent the attacker from repeatedly exploiting the vulnerability until all funds are drained and/or other irreversible damage is done. Therefore, this warrants a reward equivalent to 10% of funds at risk, capped at the maximum critical reward.
Reward Calculation for High Level Reports
High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are rewarded within a range of USD 10,000 to USD 50,000 depending on the funds at risk, capped at the maximum high reward.
In the event of temporary freezing, the reward doubles from the full frozen value for every additional 24 hours that the funds are temporarily frozen, up until a max cap of the high reward. This is because as the duration of the freezing lengthens, the potential for greater damage and subsequent reputational harm intensifies. Thus, by increasing the reward proportionally with the frozen duration, the project ensures stronger incentives for bug disclosure of this nature.
Reward Payment Terms
Payouts are handled by the Compound DAO directly and are denominated in USD. However, payments are done in COMP.
The calculation of the net amount rewarded is based on the average price between CoinMarketCap.com and CoinGecko.com at the time the bug report was submitted. No adjustments are made based on liquidity availability.
Primacy of Impact vs Primacy of Rules
Compound DAO adheres to the Primacy of Impact for the following impacts:
Primacy of Impact means that the impact is prioritized rather than a specific asset. This encourages security researchers to report on all bugs with an in-scope impact, even if the affected assets are not in scope.
When submitting a report on Immunefi's dashboard, the security researcher should select the Primacy of Impact asset placeholder. If the team behind this project has multiple programs, those other programs are not covered under Primacy of Impact for this program. Instead, check if those other projects have a bug bounty program on Immunefi.
If the project has any testnet and/or mock files, those will not be covered under Primacy of Impact.
All other impacts are considered under the Primacy of Rules, which means that they are bound by the terms and conditions set within this program.
Proof of Concept (PoC) Requirements
A PoC, demonstrating the bug's impact, is required for this program and has to comply with the Immunefi PoC Guidelines and Rules.
Previous Audits
Compound Finance's completed audit reports can be found listed below. Any unfixed vulnerabilities mentioned in these reports are not eligible for a reward.
Immunefi Standard Badge
By adhering to Immunefi's best practice recommendations, Compound Finance has satisfied the requirements for the Immunefi Standard Badge.
KYC Requirement
Immunefi will be requesting KYC information in order to pay for successful bug submissions. The following information will be required:
Category 3: Approval Required
Program's Custom Prohibited Activities
Default Prohibited Activities
The project may be receiving reports that are valid (the bug and attack vector are real) and cite assets and impacts that are in scope, but there may be obstacles or barriers to executing the attack in the real world. In other words, there is a question about how feasible the attack really is. Conversely, there may also be mitigation measures that projects can take to prevent the impact of the bug, which are not feasible or would require unconventional action and hence, should not be used as reasons for downgrading a bug's severity.
Immunefi has developed a set of feasibility limitation standards which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report: