10 January 2022
Live since
Yes
KYC required
$1,000,000
Maximum bounty

Program Overview

Euler is a capital-efficient permissionless lending protocol that helps users to earn interest on their crypto assets or hedge against volatile markets without the need for a trusted third party.

Euler features a number of innovations not seen before in DeFi, including permissionless lending markets, reactive interest rates, protected collateral, MEV-resistant liquidations, multi-collateral stability pools, and much more.

For more information about Euler, please visit https://www.euler.finance/#/.

This bug bounty program is focused on their smart contracts and is focused on preventing:

  • Loss of user funds staked (principal) by freezing or theft
  • Loss of governance funds
  • Theft of unclaimed yield
  • Freezing of unclaimed yield
  • Temporary freezing of funds for more than 1 week
  • Unable to call smart contract
  • Smart contract gas drainage
  • Smart contract fails to deliver promised returns
  • Vote manipulation
  • Incorrect polling actions

Rewards by Threat Level

Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System. This is a simplified 5-level scale, with separate scales for websites/apps and smart contracts/blockchains, encompassing everything from consequence of exploitation to privilege required to likelihood of a successful exploit.

All Medium, High and Critical Smart Contract bug reports require a PoC and a suggestion for a fix to be eligible for a reward. All Low Smart Contract bug reports require a suggestion for a fix to be eligible for a reward.

Critical smart contract vulnerabilities are capped at 10% of economic damage, primarily taking into consideration funds at risk, but also PR and branding aspects, at the discretion of the team. However, there is a minimum reward of USD 50 000.

Critical payouts by Sherlock will only be paid out for critical bugs that would result in a loss of funds and can be executed profitably, and this then excludes Sherlock critical bounty payout for temporary freezing bugs. If further clarification is needed to decide on a Sherlock payout, the coverage agreement between Euler and Sherlock should be referenced.

The following vulnerabilities are not eligible for a reward:

  • Anything that involves a malicious or illiquid token being promoted from isolation tier (the default ‘safe’ tier on Euler) to cross or collateral tier (where there are many more potential attack vectors). We assume governance is responsible for blocking promotion up the tiers.
  • Tokens exhibiting non-standard ERC20 behaviour that only affects holders of that token and does not impact any other assets managed by Euler. (E.g., a transfer function that fails to update users balances)
  • Oracle failure/manipulation of the form described here https://github.com/euler-xyz/uni-v3-twap-manipulation: {E.g., manipulation of the Uniswap Pools from which we derive the time-weighted average price (TWAP)}.

Payouts up to USD 50 000 are handled by the Euler team directly and are denominated in USD. However, payouts are done in USDC. Payments above that have the remainder paid out by Sherlock with their bug bounty matching program and are done in USDC.

Smart Contract

Critical
Level
Up to USD $1,000,000
Payout
PoC Required
High
Level
USD $25,000
Payout
PoC Required
Medium
Level
USD $5,000
Payout
PoC Required
Low
Level
USD $1,000
Payout

Assets in scope

All smart contracts of Euler can be found at https://github.com/euler-xyz/euler-contracts. However, only those in the Assets in Scope table are considered as in-scope of the bug bounty program.

Impacts in scope

Only the following impacts are accepted within this bug bounty program. All other impacts are not considered as in-scope, even if they affect something in the assets in scope table.

Smart Contract

  • Any governance voting result manipulation
    Critical
    Impact
  • Direct theft of any user funds, whether at-rest or in-motion, other than unclaimed yield
    Critical
    Impact
  • Permanent freezing of funds
    Critical
    Impact
  • Miner-extractable value (MEV)
    Critical
    Impact
  • Protocol Insolvency
    Critical
    Impact
  • Theft of unclaimed yield
    High
    Impact
  • Permanent freezing of unclaimed yield
    High
    Impact
  • Temporary freezing of funds
    High
    Impact
  • Smart contract unable to operate due to lack of token funds
    Medium
    Impact
  • Block stuffing for profit
    Medium
    Impact
  • Griefing (e.g. no profit motive for an attacker, but damage to the users or the protocol)
    Medium
    Impact
  • Theft of gas
    Medium
    Impact
  • Unbounded gas consumption
    Medium
    Impact

Out of Scope & Rules

The following vulnerabilities are excluded from the rewards for this bug bounty program:

  • Attacks that the reporter has already exploited themselves, leading to damage
  • Attacks requiring access to leaked keys/credentials
  • Attacks requiring access to privileged addresses (governance, strategist)

Smart Contracts and Blockchain

  • Attacks that require an illiquid/malicious token to be promoted from isolation tier to cross or collateral tier (governance is responsible for preventing this, see definitions here: https://docs.euler.finance/getting-started/white-paper#asset-tiers)
  • Uniswap v3 TWAP oracle manipulation attacks of the form described here: https://github.com/euler-xyz/uni-v3-twap-manipulation
  • Basic economic governance attacks (E.g. 51% attack)
  • Tokens exhibiting non-standard ERC20 behaviour that only affects holders of that token and does not impact any other assets managed by Euler. (E.g., malicious transfer functions, malicious transferFrom functions in the ERC-20 token contract.) Such attacks caused by malicious tokens are considered out of scope.
  • Lack of liquidity
  • Best practice critiques
  • Sybil attacks
  • Centralization risks

The following activities are prohibited by this bug bounty program:

  • Any testing with mainnet or public testnet contracts; all testing should be done on private testnets
  • Any testing with pricing oracles or third party smart contracts
  • Attempting phishing or other social engineering attacks against our 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
  • Automated testing of services that generates significant amounts of traffic
  • Public disclosure of an unpatched vulnerability in an embargoed bounty