Alchemix

Alchemix is a DeFi protocol that allows for the creation of synthetic tokens that represent the future yield of a deposit. It enables users to retrieve near instant tokenized value against temporary deposits of stablecoins. A magic money potion if you will, however one that is crafted in Defi with perhaps a sprinkling of ancient wisdom. The protocol presents a powerful new DeFi primitive offering myriad applications for users and an exciting new tool for other developers.

Version one of the Alchemix protocol supports two synthetic tokens, “alUSD”, which will be mintable using DAI as collateral, and "alETH", which is mintable using ETH as collateral. Users deposit the necessary collateral into an Alchemist smart-contract and can then mint an alX token, up to 50% the deposited amount of collateral at a 1:1 ratio. The deposited collateral is deployed to yearn vaults to earn yield.

The bug bounty program is focused around its smart contracts and the prevention of loss of user funds, flash loan attacks, economic exploits, and contract bricking.

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.

The theft of yield/interest severity classification of High does not apply to issues related to the transmuter, as it is not a source of yield.

Critical smart contract and blockchain vulnerabilities are further capped at 10% of economic damage, based primarily on the amount of funds at risk, but also taking into account branding and PR considerations, at the discretion of the team. However, there is a minimum reward of USD 50 000.

Payouts are handled by the Alchemix team directly and are denominated in USD. Payouts are done in USDC, DAI, or any other stablecoin.

The team is aware of minor rounding errors and will not accept bug reports involving them unless they lead to a bricking of the contract.

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

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