Mellow Vault code commit: [https://github.com/mellow-finance/mellow-lrt/commit/1c885ad9a2964ca88ad3e59c3a7411fc0059aa3](https://github.com/mellow-finance/mellow-lrt/commit/1c885ad9a2964ca88ad3e59c3a7411fc0059aa3)

__Whitehat Educational Resources & Technical Info__

**Documentation & Resources**

- [https://mellowprotocol.notion.site/Decentralized-Validator-Vault-a1ab952ae0a6499dbedfc45278aba5c5?pvs=74](https://mellowprotocol.notion.site/Decentralized-Validator-Vault-a1ab952ae0a6499dbedfc45278aba5c5?pvs=74) 
- [https://docs.mellow.finance/mellow-lrt-lst-primitive/dvsteth-vault-overview](https://docs.mellow.finance/mellow-lrt-lst-primitive/dvsteth-vault-overview)
- [https://docs.mellow.finance/mellow-lrt-lst-primitive/contract-deployments#dvsteth-vault](https://docs.mellow.finance/mellow-lrt-lst-primitive/contract-deployments#dvsteth-vault)
- [https://docs.mellow.finance/mellow-lrt-lst-primitive/user-tutorials](https://docs.mellow.finance/mellow-lrt-lst-primitive/user-tutorials)
- [https://docs.mellow.finance/mellow-lrt-lst-primitive/security](https://docs.mellow.finance/mellow-lrt-lst-primitive/security)
- [https://docs.mellow.finance/mellow-lrt-lst-primitive/lrt-contracts](https://docs.mellow.finance/mellow-lrt-lst-primitive/lrt-contracts)
- Mellow DVT Vault Audit Competition scope: [https://hackmd.io/@lido/BkTgoRz90](https://hackmd.io/@lido/BkTgoRz90)
- Lido docs: [https://docs.lido.fi/](https://docs.lido.fi/)

**Is this an upgrade of an existing system? If so, which? And what are the main differences?**

No, it’s a new Mellow project

**Where do you suspect there may be bugs?**

Most important parts: SimpleDVTStakingStrategy and deposit and withdraw flows, ACLs and ManagedValidator. 
Invariants: LP token price in ETH is strictly not decreasing.

**What ERC20 / ERC721 / ERC777 / ERC1155 token standards are supported? Which are not?**

Deposit and withdrawals support only ERC20 tokens. System internally can use rebasing tokens such as stETH. 
Tokens used: wstETH, stETH and wETH 

**What emergency actions may you want to use as a reason to invalidate or downgrade an otherwise valid bug report?**

Possible actions:
Disable deposits (Enable deposit locks)

**What addresses would you consider any bug report requiring their involvement to be out of scope, as long as they operate within the privileges attributed to them?**

Trusted actors:
- VaultAdmin: 0x9437B2a8cF3b69D782a61f9814baAbc172f72003 (Lido+Mellow multisig)
- ProxyVaultAdmin: 0x81698f87C6482bF1ce9bFcfC0F103C4A0Adf0Af0 (Lido+Mellow multisig (ProxyVaultAdmin can change the vault implementation.)
- CuratorAdmin: 0x2E93913A796a6C6b2bB76F41690E78a2E206Be54 (Steakhouse multisig)
- CuratorOperator: 0x2afc096981c2CFe3501bE4054160048718F6C0C8 (Steakhouse EOA)

**What addresses would you consider any bug report requiring their involvement be out of scope, even if they exceed the privileges attributed to them?**

Trusted actors:
- VaultAdmin: 0x9437B2a8cF3b69D782a61f9814baAbc172f72003, (Lido+Mellow multisig)
- ProxyVaultAdmin: 0x81698f87C6482bF1ce9bFcfC0F103C4A0Adf0Af0 (Lido+Mellow multisig (ProxyVaultAdmin can change the vault implementation.))
- CuratorAdmin: 0x2E93913A796a6C6b2bB76F41690E78a2E206Be54 (Steakhouse multisig)
- CuratorOperator: 0x2afc096981c2CFe3501bE4054160048718F6C0C8 (Steakhouse EOA)

**What external dependencies are there?**

Open Zeppelin 5.0.2, Lido

**Where might whitehats confuse out-of-scope code to be in-scope?**

Lido contracts

**Are there any unusual points about your protocol that may confuse whitehats?**

In emergency withdrawal we calculate amounts based on ERC20 balances of tokens and not based on baseTvl function (Vault) return values

**Which chains are the smart contracts going to be deployed to?**

Ethereum Mainnet 
Docs: [https://docs.mellow.finance/mellow-lrt-lst-primitive/contract-deployments#dvsteth-vault](https://docs.mellow.finance/mellow-lrt-lst-primitive/contract-deployments#dvsteth-vault)

**What is the test suite setup information?**

[https://github.com/mellow-finance/mellow-lrt/tree/fixes/audit-sherlock-fixes/tests/obol](https://github.com/mellow-finance/mellow-lrt/tree/fixes/audit-sherlock-fixes/tests/obol)

**Public Disclosure of Known Issues**

Bug reports covering previously-discovered bugs (listed below) are not eligible for a reward within this program. This includes known issues that the project is aware of but has consciously decided not to “fix”, necessary code changes, or any implemented operational mitigating procedures that can lessen potential risk. 
- From Sherlock contest:
      - We consider the price of 1 steth == 1 eth.
      - In emergencyWithdraw, we process withdrawals not through the values from baseTvl but through regular ERC20 balances (this is a design decision).
      - In the SimpleDVTStakingStrategy, the convertAndDeposit function can be front-run by anyone.

- From ChainSecurity:
      - The StakingModule may not deposit into the Simple DVT module (due to MinFirstAllocationStrategy in Lido).
      - Emergency withdrawal (the same second point from Sherlock).
      - All updates of important parameters can be front-run (this is 5.6 from ChainSecurity).

**Previous Audits**

Mellow’s completed audit reports can be found at [https://github.com/mellow-finance/mellow-lrt/tree/fixes/audit-sherlock-fixes/audits](https://github.com/mellow-finance/mellow-lrt/tree/fixes/audit-sherlock-fixes/audits). Any unfixed vulnerabilities  mentioned in these reports are not eligible for a reward.

__Asset In Scope Policies__

**Asset Accuracy Assurance**

Bugs found on assets incorrectly listed in-scope will be considered valid and be rewarded.

**Private Known Issues Reward Policy**

Private known issues, meaning known issues that were not publicly disclosed, are valid for a reward.

**Known Issue Assurance**

Lido commits to providing Known Issue Assurance to bug submissions through their program. This means that Lido will either disclose known issues publicly, or at the very least, privately via a self-reported bug submission. 

In a potential scenario of a mediation, this allows for a more objective and streamlined process, in order to prove that an issue is known. Otherwise, assuming the bug report is valid, it would result in the report being considered as in-scope, and due a reward.

**Primacy of Impact vs Primacy of Rules**

Lido 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.

marchev

https://drive.google.com/file/d/1L1OK7_NmMl8IRaViao8JEjY1gTVPSPvK/view?usp=sharing

Theft of unclaimed yield

Theft of unclaimed royalties

Permanent freezing of unclaimed yield

Permanent freezing of unclaimed royalties

Temporary freezing of funds for at least 1 week

Smart contract unable to operate due to lack of token funds

Block stuffing

Griefing (e.g. no profit motive for an attacker, but damage to the users or the protocol)

Theft of gas

Unbounded gas consumption

Direct theft of any user funds, whether at-rest or in-motion, other than unclaimed yield

Permanent freezing of funds

Protocol insolvency

**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](https://immunefisupport.zendesk.com/hc/en-us/articles/9946217628561-Proof-of-Concept-PoC-Guidelines-and-Rules).

**Eligibility Criteria**

Security researchers who wish to participate must adhere to the rules of engagement set forth in this program and cannot be:
- On OFACs SDN list 
- Official contributor, both past or present
- Employees and/or individuals closely associated with the project 
- Security auditors that directly or indirectly participated in the audit review

__Responsible Publication__

Whitehats may publish their bug reports after they have been fixed & paid, or closed as invalid, with the following exceptions:
- Bug reports in mediation may not be published until mediation has concluded and the bug report is resolved.

Immunefi may publish bug reports submitted to this audit competition and a leaderboard of the participants and their earnings.

__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.

Therefore, Immunefi has developed a set of [feasibility limitation standards](https://immunefisupport.zendesk.com/hc/en-us/articles/16913132495377-Feasibility-Limitation-Standards) which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report.

__Immunefi Standard Badge__

By adhering to Immunefi’s best practice recommendations, Ionic has satisfied the requirements for the [Immunefi Standard Badge](https://immunefisupport.zendesk.com/hc/en-us/articles/15006865432209-The-Immunefi-Standard-Badge).

The following reward terms are a summary, for the full details read our [Lido Audit Competition Reward Terms](https://immunefisupport.zendesk.com/hc/en-us/articles/27551774731153-Lido-Audit-Competition-Reward-Terms). 

The reward pool will be entirely distributed among participants. The size depends on the bugs found:
- If one or more Critical severity bugs are found the reward pool will be - $100,000 USD
- If one or more High severity bugs are found the reward pool will be - $75,000 USD
- If one or more Medium severity bugs is found the reward pool will be - $20,000 USD

For this Audit Competition, duplicates and private known issues are valid for a reward. 

Private known issues will unlock higher reward pools as though they were one severity level lower. For example, a Critical severity bug which was a private known issue would unlock the reward pool conditional on a High severity bug being found.

The severity level of private known issues remains unchanged and whitehats earn their portion of the reward pool and position on the leaderboard according to this unchanged severity level.

Rewards are distributed according to the impact of the vulnerability based on the [Immunefi Vulnerability Severity Classification System V2.3](https://immunefi.com/immunefi-vulnerability-severity-classification-system-v2-3/).

__Reward Payment Terms__

Payouts are handled by the Lido team directly and are denominated in USD. However, payments are done in DAI.

Rewards will be distributed all at once based on Immunefi’s distribution formula after the event has concluded and the final bug reports have been resolved.

__Insight Rewards Payment Terms__

Insight Rewards: Portion of the Rewards Pool

* The "Insight" severity was introduced on Audit Competition & Attackathon programs to recognize contributions that extend beyond identifying immediate vulnerabilities. Currently, it's not an option to select the Insight severity when submitting a report. However, our team or program will designate it accordingly if applicable. "Insights" underscores our commitment to valuing all types of contributions that contribute to a more secure environment and will always be rewarded. View more information about Insights.

Audit Comp | Lido: Mellow Vault

Status

Status