Euro Dollar Audit Competition — Rewards up to $12,000 in USDC

Starting November 4th, at 15:00 GMT to November 18th , 2024, at 15:00 GMT

We invite all white hat hackers to join the hunt for the EuroDollar audit competition.

All experience levels are welcome; whether you are a seasoned security veteran or an amateur, show us what you’ve got! Prizes will be given based on the severity level of each vulnerability found.

About the Competition

Starting November 4th, a new vault will open in the Hats dApp — “EuroDollar”.
Participants can check the scope of the contracts and start searching for bugs.

About Eurodollar

Eurodollar is an upcoming service provider releasing stable and invest tokens onchain. Made in Europe and fully transparent.

Audit competition info:
The competition code language is Solidity, and the SLOC estimation for this competition is 390 SLOC.

This competition is hosted on Arbitrum; please make sure you have funds to submit the reports. You can submit more than one report at the same transaction — search for the plus button.

Stay up-to-date with the competition, chat with the team, and get your questions answered by joining the dedicated Discord channel on the Hats server.

All audit reports will be published in our Discord on the day of the competition. Don’t miss the latest updates and insights — join now and be the first to know!

Audit competition rewards

• Deposited Amount: The deposited amount is ~$15K in USDC, making the available prize pool ~$12K in USDC.
• Service Fee: All rewards mentioned in this article and on the Hats dApp UI have already had a 20% Hats service fee deducted.
• Severities: Low, Medium, High

Rewards and Calculation

The entire prize pool for our audit competition is up for grabs across all severity levels. Severity levels have specific point values, which determine payout cap per submission.

Maximum Reward Caps per Submission:

• Low Severity: 300 USDC (equals 1 point)
• Medium Severity: 2550 USDC (equals 8.5 points)
• High Severity: 4950 USDC (equals 16.5 points)

*For simplicity, there is a relation between the points and the cap. If the cap is 300 USDC, it equals a 2.5% allocation from the max rewards.

Points are consistently awarded within each severity level, with all findings at the same level earning the same points unless adjusted by the committee.

Calculating the Winner’s Reward:

The formula for a winner’s reward is as follows:

Point Value = Prize Pool / Total Points*

*Awarded for the entire competition

Examples for Clarity:

Example #1:

• 150 Low Severity: 150 points
• 1 Medium Severity: 8.5 points
• 1 High Severity: 16.5 points

Total points: 175

In this scenario:

• Value of 1 Point = 12,000 USDC/175 Total points =~ 68.5 USDC
  The rewards for this example will be as follows:
• Low (150 points): $~ 68.5 each
• Medium (8.5 points): $~583 in total.
• High (16.5 points): $~1,130 in total.

Example #2

• 10 Low Severity: 10 points
• 1 Medium: 8.5 points

Total points: 18

In this scenario:

• Value of 1 Point = 12,000 USDC/18.5 Total points = $~649 USDC
  The results exceed the max reward per low severity, so the value of a point is adjusted.
• The rewards for this example will be as follows:
• Low (10 points): $~649 each > from the cap.
  Reward will be $300 per each, $3,000 in total.
• Medium (8.5 points): $~5,516 > from the cap.
  Reward will be $2550 in total.

Severities

High Severity

Issues that will qualify for this bracket will be assigned 16.5 points.

High-severity vulnerability description:

Issues that lead to the loss of user funds. Such issues include:

• Direct theft of any user funds, whether at rest or in motion.
• Long-term freezing of user funds.
• Protocol insolvency

Medium Severity

Issues that will qualify for this bracket will be assigned 8.5 points.

Medium severity vulnerability description:

• Attacks that make essential functionality of the contracts temporarily unusable or inaccessible, without putting funds at risk.

Low severity

Issues that will be qualified for this bracket will be assigned with 1 point.

Low severity vulnerability description:

• Issues where the behavior of the contracts differs from the intended behavior (as described in the docs and by common sense), but no funds are at risk.

Limitations

Reporters will not receive a bounty for any known issue, such as:

• Issues mentioned in any previous audit reports
• Vulnerabilities that were already made public (either by HATs or by a third-party
• “Centralization risks” that are known and/or explicitly coded into the protocol (e.g. an administrator can upgrade crucial contracts and steal all funds)
• Attacks that require access to leaked private keys or trusted addresses
• Issues/contracts mentioned in the out-of-scope section

Submission Guidelines — High/Medium/Low severities:

General Information:

• The Hats team will create a new repository called “ Euro dollar audit competition” under the Hats.finance organization on GitHub. The repository will be kept private until the competition starts. Hats bot will fork it on the first submission. To participate, security researchers must submit their findings on-chain, and an automatic GitHub issue will be generated in the forked repository.
• How it Works: Video Explanation

SUBMISSION GUIDELINES:

• Submissions should be made using our Dapp.
• You can submit one on-chain submission mentioning all issues found on the repo.
• All new submissions will be created on Hats forked repo on Hats: Hats GitHub

Report Format:

• Please send a plain ASCII description in the following format:
• [TITLE]: A short description of the issue.
• SEVERITY: Either High, Medium, or Low (as per the rules).
• Submission should contain at least one test demonstrating the problem and, if possible, a possible fix.

Report Template:

• Description: Describe the context and the effect of the vulnerability.
• Attack scenario: Describe how the vulnerability can be exploited.

Attachment:

• Proof of Concept (PoC) File: Provide a file containing a Proof of Concept (PoC) that demonstrates the vulnerability. High-severity findings must include a PoC of the exploit as well.
• Revised Code File (Optional): If possible, provide a second file containing the revised code that offers a potential fix for the vulnerability. This file should include:
• Comment with a clear explanation of the proposed fix.
• The revised code with suggested changes.
• Add any additional comments or explanations clarifying how the fix addresses the vulnerability.
• Recommendation: Describe a patch or potential fix for the vulnerability.

***Due to the nature of the audit competition mechanism, the report will not be encrypted.***

Evaluation:

• The first participant to submit an issue following guidelines gets a bounty for that issue (issues already received or out of scope will not receive a reward)
• The competition starts on November 4th, at 15:00 GMT and ends on November 18th, at 15:00 GMT
• Issues that we are aware of (as witnessed by any open issues in the repository) will not be eligible for the bug bounty.

Compensation and Impact

A prize pool of $12K USDC will be distributed among security researchers who submit eligible vulnerability disclosures.

Compensation payment timeline:

• Ten days after the competition ends, we will announce a winner list.
• Alongside the winner announcement post, submitters can send disputes to the committee team and request clarification. They can also involve the Hats security team in the process. The goal is to facilitate honest and professional debate regarding disputed submissions.
• Between 7–14 days after the announcement, we will publish a split contract where the winners can claim their rewards.
• HATS Service Fee: A 20% deduction from the payout will always be allocated as the service fee.

Security researchers play a crucial role in fostering trust and confidence in Web3 technologies, paving the way for mass adoption. By participating in this competition, security researchers can gain recognition for their work, raise their profile, and make valuable connections in the Web3 security ecosystem. Ultimately, they can contribute to creating a more secure and equitable community.

Join the EuroDollar Audit Competition today and participate in the movement to secure the future of Web3 and decentralized finance. Check the Hats Finance dApp for more information and in-scope contracts.

Stay tuned and check Hats dApp:https://app.hats.finance/audit-competitions