Paladin

Paladin is a decentralized, non-custodial governance lending protocol where users can either loan the voting power in their governance token, or borrow some voting power.

Depositors stake governance tokens or derivatives that grant voting power in exchange for yield, while borrowers can leverage their voting power to gain more influence temporarily.

Paladin is a work in progress currently on the Kovan testnet. Once the platform is on mainnet, this bug bounty program will be updated.

For more information about Paladin, please visit https://www.paladin.vote/.

The bug bounty program covers its smart contracts and is focused on preventing the following impacts:

• Thefts and freezing of principal of any amount
• Thefts and freezing of unclaimed yield of any amount
• Override of smart contracts ownership

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.

All bug reports must come with a PoC and a suggestion for a fix.

This bug bounty program has a total initial budget of USD 75 000. If there are bug reports received over a short span of time that are validated, the rewards are distributed on a first-come-first-served basis. Afterwards, the bug bounty program will be paused until mid-october 2021 at the latest and rewards will be distributed then.

Payouts are handled by the Paladin team directly and are denominated in USD. Payouts are done in USDC.

All contracts can be found at https://github.com/PaladinFinance/Paladin-Protocol. However, only the contracts listed in the table are counted as within the scope of the bug bounty program. While the GitHub is private, please email valentin@paladin.vote for access.

Impacts in Scope

Only the following impacts are accepted within this bug bounty program. All other impacts are not considered as in-scope, even if they affect something in the assets in scope table.

Smart Contracts

• Loss of user funds staked (principal) by freezing or theft
• Theft of unclaimed yield
• Freezing of unclaimed yield
• Temporary freezing of funds for 1 hour or more
• Unable to call smart contract
• Smart contract gas drainage
• Smart contract fails to deliver promised returns
• Override of smart contracts ownership

We are especially interested in receiving and rewarding vulnerabilities of the following types:

Smart Contracts and Blockchain

• Re-entrancy
• Logic errors
  • including user authentication errors
• Solidity/EVM details not considered
  • including integer over-/under-flow
  • including rounding errors
  • including unhandled exceptions
• Trusting trust/dependency vulnerabilities
  • including composability vulnerabilities
• 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
• Missing access controls / unprotected internal or debugging interfaces
• Exploit of delegatecalls in the smart contracts to steal funds
• Upgradability issues

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)

Smart Contracts and Blockchain

• 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 -> But only for problematic implementations resulting in flaws
• Sybil attacks

The following activities are prohibited by this 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