Morpho
Morpho Blue is an immutable overcollateralized lending protocol with permissionless market creation. It implements independent lending markets, which are simple lending pools with only one collateral asset and one borrowable asset, priced through an oracle. The interest rate is given by an immutable interest rate model (IRM). Each pool is characterized by a predefined Liquidation Loan-to-Value (LLTV).
Triaged by Immunefi
PoC required
KYC required
Rewards by Threat Level
Rewards are distributed according to the impact of the vulnerability based on the Immunefi Vulnerability Severity Classification System V2.3.
Reward Calculation for Critical Level Reports
For critical smart contract bugs on Morpho Blue smart contracts solely, the reward amount is 10% of the funds directly affected up to a maximum of USD 2 500 000. The calculation of the amount of funds at risk is based on the time and date the bug report is submitted. However, a minimum reward of USD 250 000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.
For critical smart contract bugs on MetaMorpho and other Morpho Blue periphery smart contracts, the reward amount is 10% of the funds directly affected up to a maximum of USD 1 500 000. The calculation of the amount of funds at risk is based on the time and date the bug report is submitted. However, a minimum reward of USD 150 000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.
For critical smart contract bugs on Morpho’s Optimizer contracts, the reward amount is 10% of the funds directly affected up to a maximum of USD 555 555. The calculation of the amount of funds at risk is based on the time and date the bug report is submitted. However, a minimum reward of USD 55 000 is to be rewarded in order to incentivize security researchers against withholding a critical bug report.
Repeatable Attack Limitations
- If the smart contract where the vulnerability exists can be upgraded or paused, only the initial attack will be considered for a reward. This is because the project can mitigate the risk of further exploitation by upgrading or pausing the component where the vulnerability exists. The reward amount will depend on the severity of the impact and the funds at risk.
- For critical repeatable attacks on smart contracts that cannot be upgraded or paused, the project will consider the cumulative impact of the repeatable attacks for a reward.
This is because the project cannot prevent the attacker from repeatedly exploiting the vulnerability until all funds are drained and/or other irreversible damage is done. Therefore, this warrants a reward equivalent to 10% of funds at risk, capped at the maximum critical reward.
Reward Calculation for High Level Reports
- High vulnerabilities concerning theft/permanent freezing of unclaimed yield/royalties are rewarded within a range of USD 10 000 to USD 50 000 depending on the funds at risk, capped at the maximum high reward.
- In the event of temporary freezing, the reward doubles from the full frozen value for every additional [24h] that the funds are temporarily frozen, up until a max cap of the high reward. This is because as the duration of the freezing lengthens, the potential for greater damage and subsequent reputational harm intensifies. Thus, by increasing the reward proportionally with the frozen duration, the project ensures stronger incentives for bug disclosure of this nature.
For critical web/apps bug reports will be rewarded with USD 50 000, only if the impact leads to:
- A loss of funds involving an attack that does not require any user action
- Private key or private key generation leakage leading to unauthorized access to user funds
All other impacts that would be classified as Critical would be rewarded a flat amount of USD 10 000. The rest of the severity levels are paid out according to the Impact in Scope table.
Reward Payment Terms
Payouts are handled by the Morpho team directly and are denominated in USD. However, payments are done in USDC on Ethereum.
The calculation of the net amount rewarded is based on the average price between CoinMarketCap.com and CoinGecko.com at the time the bug report was submitted. No adjustments are made based on liquidity availability.
Program Overview
Morpho Blue is an immutable overcollateralized lending protocol with permissionless market creation. It implements independent lending markets, which are simple lending pools with only one collateral asset and one borrowable asset, priced through an oracle. The interest rate is given by an immutable interest rate model (IRM). Each pool is characterized by a predefined Liquidation Loan-to-Value (LLTV). Markets can be created by anyone with any ERC20 assets and oracles, with an LLTV and IRM chosen in a set predefined by governance.
MetaMorpho is a protocol for permissionless lending vaults built on top of the Morpho Blue protocol. Additionally, the Morpho Blue periphery contracts are smart contracts part of the Morpho Blue ecosystem such as MetaMorpho, a protocol for permissionless lending vaults on top of the Morpho Blue protocol.
Morpho Optimizer is a Peer-to-Peer layer on top of lending pools like Compound or Aave. Rates are seamlessly improved for both suppliers and borrowers whilst preserving the same liquidity and liquidation guarantees. In short, Compound Optimizer is an upgraded version of Compound, Aave Optmizers are upgraded version of Aave.
For more information about Morpho, please visit https://morpho.org/ Morpho provides rewards in USDC on Ethereum, denominated in USD. For more details about the payment process, please view the Rewards by Threat Level section further below.
KYC Requirement
- Morpho will be requesting KYC information in order to pay for successful bug submissions. The following information will be required:
- Full name
- Date of birth
- Copy of Passport or other Government issued ID
Eligibility Criteria
- Security researchers who wish to participate must adhere to the rules of engagement set forth in this program and cannot be:
- On OFACs SDN list
- Official contributor, both past or present
- Employees and/or individuals closely associated with the project
- Security auditors that directly or indirectly participated in the audit review
Responsible Publication
Morpho adheres to category 3 - Approval Required. This Policy determines what information researchers are allowed to make public from their submitted bug reports. For more information about the category selected, please refer to our Responsible Publication page.
Primacy of Impact vs Primacy of Rules
Morpho adheres to the Primacy of Impact for the following impacts:
- Smart Contract - Critical
- Smart Contract - High
- Web/App - Critical
Primacy of Impact means that the impact is prioritized rather than a specific asset. This encourages security researchers to report on all bugs with an in-scope impact, even if the affected assets are not in scope. For more information, please see Best Practices: Primacy of Impact
When submitting a report on Immunefi’s dashboard, the security researcher should select the Primacy of Impact asset placeholder. If the team behind this project has multiple programs, those other programs are not covered under Primacy of Impact for this program. Instead, check if those other projects have a bug bounty program on Immunefi.
If the project has any testnet and/or mock files, those will not be covered under Primacy of Impact.
All other impacts are considered under the Primacy of Rules, which means that they are bound by the terms and conditions set within this program.
Proof of Concept (PoC) Requirements
A PoC, demonstrating the bug's impact, is required for this program and has to comply with the Immunefi PoC Guidelines and Rules.
Public Disclosure of Known Issues
Bug reports covering previously-discovered bugs (listed below) are not eligible for a reward within this program. This includes known issues that the project is aware of but has consciously decided not to “fix”, necessary code changes, or any implemented operational mitigating procedures that can lessen potential risk. Every issue opened in the repo, closed PRs, previous contests and audits are out of scope.
- https://github.com/morpho-org/morpho-blue
- https://github.com/morpho-org/morpho-blue-irm
- https://github.com/morpho-org/morpho-blue-oracles
- https://github.com/morpho-org/metamorpho
- https://github.com/morpho-org/universal-rewards-distributor
- https://github.com/morpho-org/public-allocator
- https://github.com/morpho-org/morpho-blue-bundlers
Previous Audits
Morpho’s completed audit reports can be found at https://docs.morpho.org/security-reviews/. Any unfixed vulnerabilities mentioned in these reports are not eligible for a reward.
Feasibility Limitations
The project may be receiving reports that are valid (the bug and attack vector are real) and cite assets and impacts that are in scope, but there may be obstacles or barriers to executing the attack in the real world. In other words, there is a question about how feasible the attack really is. Conversely, there may also be mitigation measures that projects can take to prevent the impact of the bug, which are not feasible or would require unconventional action and hence, should not be used as reasons for downgrading a bug's severity.
Therefore, Immunefi has developed a set of feasibility limitation standards which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report.
Immunefi Standard Badge
By adhering to Immunefi’s best practice recommendations, Morpho has satisfied the requirements for the Immunefi Standard Badge.
KYC required
The submission of KYC information is a requirement for payout processing.
Prohibited Activities
- Any testing on mainnet or public testnet deployed code; all testing should be done on local-forks of either public testnet or mainnet
- 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 that are executed against project assets
- Automated testing of services that generates significant amounts of traffic
- Public disclosure of an unpatched vulnerability in an embargoed bounty
- Any other actions prohibited by the Immunefi Rules
Feasibility Limitations
The project may be receiving reports that are valid (the bug and attack vector are real) and cite assets and impacts that are in scope, but there may be obstacles or barriers to executing the attack in the real world. In other words, there is a question about how feasible the attack really is. Conversely, there may also be mitigation measures that projects can take to prevent the impact of the bug, which are not feasible or would require unconventional action and hence, should not be used as reasons for downgrading a bug's severity. Therefore, Immunefi has developed a set of feasibility limitation standards which by default states what security researchers, as well as projects, can or cannot cite when reviewing a bug report.