Overlay

Overlay enables markets on streams of data without the need for traditional counterparties or liquidity pools. The protocol accomplishes this through its native token, OVL.

The mechanism is relatively simple: Traders stake OVL as collateral on an Overlay market to enter a position on a particular stream. If the trade is profitable when the trader looks to unwind, the protocol mints more OVL to the circulating supply to compensate the trader for their gains. Conversely, if the trade is at a loss, the protocol burns OVL from the position’s staked collateral, removing the tokens from the circulating supply.

For more information about Overlay, please visit https://overlay.market/.

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, smart contracts, and blockchains/DLTs, focusing on the impact of the vulnerability reported.

All bug reports must come with a PoC with an end-effect impacting an asset-in-scope in order to be considered for a reward. Explanations and statements are not accepted as PoC and code is required.

The following issues are considered out of scope of this program:

• Economic oracle (time-weighted price and liquidity) manipulation
• System insolvency if due to economic factors / market movements

In addition, issues previously highlighted in the following audit reports are considered out of scope:

• https://github.com/overlay-market/v1-core/blob/main/audits/spearbit/audit.pdf
• https://github.com/overlay-market/v1-core/blob/main/audits/leastauthority/audit.pdf

Payouts are handled by the Overlay team directly and are denominated in USD. However, payouts are done in USDC.

All smart contracts of Overlay can be found at https://github.com/overlay-market/v1-core/. However, only those in the Assets in Scope table are considered as in-scope of the bug bounty program.

If an impact can be caused to any other asset managed by Overlay that isn’t on this table but for which the impact is in the Impacts in Scope section below, you are encouraged to submit it for the consideration by the project.

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

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