Metrom — rewards up to $5.6K in DAI

Starting May 20, 2024, at 15:00 GMT to June 3, 2024, at 15:00 GMT

We invite all white hat hackers to join the hunt on Metrom audit competition

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

About the Competition

Starting May 20, a new vault will open in the Hats dApp — “Metrom”.
Participants can check the contracts in scope and start searching for bugs.

About Metrom

Metrom is a tool that dexes (especially those based on concentrated liquidity AMMs) can use to incentivize liquidity providers to provide the maximum amount of liquidity possible in the way that is the most efficient through the creation of dedicated incentivization campaigns.

Campaign creators must specify a targeted pool (the incentivized pool can even live on a chain that is different from the campaign’s chain, making the product cross-chain), a running period, and a list of up to 5 rewards that will be distributed to active LPs proportional to their liquidity contribution in the pool.

Once a campaign is created and activated, Metrom monitors the targeted pool, processing all the meaningful on-chain events that happen on it and computing a rewards distribution list off-chain depending on the contribution of the various LPs. A Merkle tree is constructed from the list and its root is then pushed on-chain. Eligible LPs can then claim their rewards (if any) by simply providing a tree inclusion proof to the Metrom smart contract. In the very rare case that some rewards went unassigned because of zero liquidity in the pool, the campaign’s owner is able to recover any unassigned reward.

Short overview of the audit scope

[Sloc/Loc]
Example: The competition code language is Solidity and the SLOC estimation for this competition is ~250 SLOC.
[Arbitrum]
Example: To reduce transaction costs, we’re shifting our audits vault to Layer 2 networks. Specifically, this competition is hosted on Arbitrum for more efficient fee management.

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 ~$7K in DAI, making the available prize pool ~$5.6K in DAI.
• Service Fee: All rewards mentioned in this article and on the Hats dApp UI have already deducted a 20% Hats service fee.
• Severities: Low, Medium, High

Rewards and calculation

For our audit competition, the entire prize pool is up for grabs across all severity levels. Each severity level has a designated point value and a maximum payout cap.

Maximum Reward Caps per Submission:

• Low Severity: 250 DAI (equals 1 point)
• Medium Severity: 1500 DAI (equals 6 points)
• High Severity: 3000 DAI (equals 12 points)

*For simplicity, there is a relation between the points and the cap. If the cap is 250 DAI, it equals the allocation of 4.46% from the max reward per valid submission.

Points are consistently awarded within the same severity level unless the committee decides to adjust this. For instance, both the first and second low-severity findings will earn 1 point each. This standard applies to medium and high severities as well.

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:

• 163 Low Severity: 163 points
• 1 Medium Severity: 6 points
• 1 High Severity: 12 points

Total points: 181

In this scenario:

• Value of 1 Point = 5600 DAI/181 Total points = 30.93 DAI
  The rewards for this example will be as follows:
• Low (163 points): $30.93 each
• Medium (6 points): $185.63 in total.
• High (12 points): $371.27 in total.

Example #2

• 10 Low Severity: 10 points
• 1 Medium: 6 points

Total points: 16

In this scenario:

• Value of 1 Point = 5600 DAI/16 Total points = 350 DAI
  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): $350 each -> $250
• Medium (6 points): $2100 -> $1500

Severities

High Severity

Issues that will qualify for this bracket will be assigned 12 points.

High-severity vulnerability description:

For a submission to be considered a HIGH-risk vulnerability, issues must:

• Direct theft of any user funds, whether at rest or in motion
• Long-term freezing of user funds
• Theft or long-term freezing of unclaimed yield or other assets
• Protocol insolvency

Medium Severity

Issues that will qualify for this bracket will be assigned 6 points.

Medium severity vulnerability description:

Issues that lead to an economic loss but do not lead to direct loss of on-chain assets. Examples are:

• Gas griefing attacks (make users overpay for gas)
• Attacks that make essential functionality of the contracts temporarily unusable or inaccessible
• Short-term freezing of user funds

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 “Metrom 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.
• 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 May 20 at 15:00 GMT and ends on June 3 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 ~$5.6K DAI and NFT rewards from our hacker collection 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 Metrom 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