USDN Bug Bounty Program

Program Overview

USDN is the first synthetic U.S. dollar backed by a structured product utilizing a Delta-Neutral Strategy. Unlike traditional stablecoins, whose value is guaranteed by centralized entities, the value of a synthetic dollar is determined by a purely mathematical financial process.

For more information about USDN, please visit https://docs.smardex.io/ultimate-synthetic-delta-neutral.

USDN provides rewards in SDEX on Ethereum, denominated in USD.

Rewards

Rewards by Threat Level

Smart Contract

• Critical

  • Max: $50,000
  • Min: $10,000

• High

  • Max: $5,000
  • Min: $3,000

• Medium

  • Flat: $3,000

• Low

  • Flat: $1,000

Critical Reward Calculation

Mainnet assets: Reward amount is 10% of the funds directly affected up to a maximum of $50,000.

Minimum reward to discourage security researchers from withholding a bug report: $10,000

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 50,000. 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 10,000 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 3,000 to USD 5,000 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 24h 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 USDN team directly and are denominated in USD. However, payments are done in SDEX on Ethereum.

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.

Responsible Publication

USDN adheres to Category 3: Approval Required. This Policy determines what information researchers are allowed to make public from their submitted bug reports. For more information about the category selected, please refer to the Responsible Publication page.

Primacy of Impact vs Primacy of Rules

USDN adheres to the Primacy of Rules, which means that the whole bug bounty program is run strictly under the terms and conditions stated within this page.

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.

Proof of concept is always required for all severities.

Previous Audits

USDN's completed audit reports can be found at https://docs.smardex.io/ultimate-synthetic-delta-neutral/audits. Any unfixed vulnerabilities mentioned in these reports are not eligible for a reward.

Audit Reports

Feasibility Limitations

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.

KYC Requirements

No KYC information is required for payout processing.

Prohibited Activities

• Any testing on mainnet or public testnet deployed code; all testing should be done on local-forks of either public testnet or mainnet

• Any testing with pricing oracles or third-party smart contracts

• Attempting phishing or other social engineering attacks against employees and/or customers

• Any testing with third-party systems and applications (e.g. browser extensions) as well as websites (e.g. SSO providers, advertising networks)

• Any denial of service attacks that are executed against project assets

• Automated testing of services that generates significant amounts of traffic

• Public disclosure of an unpatched vulnerability in an embargoed bounty

• Any other actions prohibited by the Immunefi Rules