Yield Protocol

Program Overview

Yield Protocol brings collateralized fixed-rate, fixed-term borrowing and lending and interest rate markets to decentralized finance.

This solves a major pain point around today’s DeFi lending protocols: predictable interest rates. Existing DeFi protocols offer only variable interest rates. These protocols may experience interest rate volatility that can make it difficult for you to plan for the future, make investment decisions, and properly hedge risk when borrowing and lending.

Yield Protocol allows you to have a “set and forget” experience, instead of constantly rebalancing your assets across DeFi in an effort to minimize your borrow rates or maximize your lending yields. We accomplish that with a new primitive, fixed yield tokens, or fyTokens for short. fyTokens are Ethereum-based tokens (ERC20) that may be redeemed one-for-one for a target asset after a predetermined maturity date.

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

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.

Smart Contracts and Blockchain

Level
Critical	USD $50,000
High	USD $15,000
Medium	USD $8,000
Low	USD $2,000

Payouts are handled by Yield Protocol directly and are denominated in USD. Payouts are done in USDC or Dai.

Assets in Scope

Target	Type
https://github.com/yieldprotocol/fyDai/tree/master/contracts	Smart contract - fyDai
https://github.com/yieldprotocol/yield-liquidator	Smart contract - Liquidator
https://github.com/yieldprotocol/yieldspace-v1/tree/master/contracts	Smart contract - YieldSpace AMM
https://github.com/yieldprotocol/fyDai-proxies	Smart contract - fyDai UX proxies
https://github.com/yieldprotocol/fyDai-USDCProxy	Smart contract - fyDai + USDC UX proxies

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