Klondike

Submit a Bug
12 April 2021
Live since
No
KYC required
$20,000
Maximum bounty

Program Overview

Klondike’s goal is to create a platform for various synthetic assets based on an improved Basis stabilization model with the implementation of a stabilization fund supporting the peg in times of need. The fund and other features will be able to fix current price issues of similar protocols.

We use the Basis.Cash stabilization model, but with some major tweaks. The main drawback of the Basis model, as it turned out, is the instability of the system caused by huge rapid increases in the supply with a subsequent price fall due to insane APY on farming. The reason for that, as one could argue, is misuse of the original Basis model which wasn’t supposed to expand in supply so quickly or be “farmed” at all. We’re solving these issues with the implementation of a stabilization fund.

The bug bounty program is focused around its smart contracts and the prevention of loss of user funds and the denial of service.

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.

Payouts are handled by the Klondike Finance team directly and are denominated in USD. Payouts are done in USDC or DAI.

The final payout amount is determined by the exploitability of the bug reported. If the exploitability is determined to only be possibly done by the Klondike Finance team, there is no reward for the bug report.

This bug bounty program has an overall pool cap of USD 40 000. In the event of multiple active reports going above the pool cap, the rewards are distributed on a first-come- first-serve basis. This pool cap will be updated as rewards are paid out.

Smart Contracts and Blockchain

Critical
Level
USD $10,000 - USD $20,000
Payout
high
Level
USD $5,000 - USD $9,000
Payout
medium
Level
USD $1,000 - USD $4,999
Payout
low
Level
USD $0 - USD $990
Payout
none
Level
USD $0
Payout

Assets in Scope

Smart contract
Type

Prioritized Vulnerabilities

We are especially interested in receiving and rewarding vulnerabilities of the following types:

Smart Contracts/Blockchain:

  • Re-entrancy
  • Logic errors
    • including user authentication errors
  • Solidity/EVM details not considered
    • including integer over-/under-flow
    • including unhandled exceptions
  • Trusting trust/dependency vulnerabilities
    • including composability vulnerabilities
  • Oracle failure/manipulation
  • Novel governance attacks
  • Economic/financial attacks
    • including flash loan attacks
  • Congestion and scalability
    • including running out of gas
    • including block stuffing
    • including susceptibility to frontrunning
  • Consensus failures
  • Cryptography problems
    • Signature malleability
    • Susceptibility to replay attacks
    • Weak randomness
    • Weak encryption
  • Susceptibility to block timestamp manipulation
  • Missing access controls / unprotected internal or debugging interfaces

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)
  • Incorrect data supplied by third party oracles
    • Not to exclude oracle manipulation/flash loan attacks
  • Basic economic governance attacks (e.g. 51% attack)
  • Lack of liquidity
  • Best practice critiques
  • Sybil attacks

The following activities are prohibited by 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