Opyn: Squeeth

Opyn builds DeFi native derivatives and options infrastructure that allow users and protocols to buy, sell, and create options, and utilize brand new primitives like squeeth. DeFi enthusiasts and projects alike rely on Opyn’s smart contracts and interface to hedge themselves against DeFi risks and take positions on different cryptocurrencies.

Squeeth (squared ETH) is a new financial derivative. Squeeth is the first Power Perpetual and gives traders perpetual exposure to ETH².

Mechanism-wise, Squeeth functions similar to a perpetual swap, tracking the index of ETH² rather than ETH. It provides global options-like exposure (pure convexity, pure gamma) without the need for either strikes or expiries, effectively consolidating much of the options market liquidity into a single ERC20 token.

In short, Squeeth makes options perpetual and is a very effective hedge for Uniswap LPs, all ETH/USD options, and anything that has a curved payoff.

For more information about Opyn, please visit https://www.opyn.co/.

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

• Loss of user funds staked (principal) by freezing or theft
• Theft of unclaimed yield
• Freezing of unclaimed yield

Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.2. 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 web/app bug reports must come with a PoC with an end-effect impacting an asset-in-scope in order to be considered for a reward. Critical and High severity smart contract bug reports must come with a PoC with an end-effect impacting an asset-in-scope in order to be considered for a reward

Critical smart contract vulnerabilities are further capped at 10% of economic damage, with the main consideration being the funds affected in addition to PR and brand considerations, at the discretion of the team. However, there is a minimum of USD 25 000 for Critical bug reports.

The following impacts are considered to be out-of-scope of this bug bounty program:

• Economic TWAP manipulation
• System insolvency if due to economic factors / market movements

If your attack requires orders of magnitude more funds than profits, you can submit but we'll evaluate on a case-by-case basis.

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.

Payouts are handled by the Opyn team directly and are denominated in USD. However, payouts are done in USD, USDC, DAI or ETH. Critical severity smart contract rewards will be paid out by Sherlock with their bug bounty matching program and are done in USDC.

All smart contracts of Opyn: Squeeth can be found at https://github.com/opynfinance/squeeth-monorepo. However, only those in the Assets in Scope table are considered as in-scope of the bug bounty program.

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

• 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
• Centralization risks

Websites and Apps

• Any vulnerabilities that do not cause an unequivocal loss or permanent locking of user funds
• Theoretical vulnerabilities without any proof or demonstration
• Content spoofing / Text injection issues
• Self-XSS
• Captcha bypass using OCR
• CSRF with no security impact (logout CSRF, change language, etc.)
• Missing HTTP Security Headers (such as X-FRAME-OPTIONS) or cookie security flags (such as “httponly”)
• Server-side information disclosure such as IPs, server names, and most stack traces
• Vulnerabilities used to enumerate or confirm the existence of users or tenants
• Vulnerabilities requiring unlikely user actions
• URL Redirects (unless combined with another vulnerability to produce a more severe vulnerability)
• Lack of SSL/TLS best practices
• DDoS vulnerabilities
• Attacks requiring privileged access from within the organization
• Feature requests
• Best practices

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