Pendle

Pendle is the first protocol that enables the trading of tokenized future yield on an AMM system. The project aims to give holders of yield-generating assets the opportunity to generate additional yield and to lock in future yield upfront, while offering traders direct exposure to future yield streams, without the need for an underlying collateral.

Pendle exists on top of first-degree protocols and currently supports Aave and Compound, with more platforms to be integrated in the future.

There are four components that makeup Pendle’s system:

-Yield tokenization

-Pendle’s Automated Market Maker (AMM)

-Liquidity mining contracts

-Governance (Coming soon)

Further resources regarding the Pendle can be found on their website, https://pendle.finance/.

The bug bounty program is focused around its smart contracts and is mostly concerned with the loss of user funds.

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.

Critical vulnerabilities are capped at 10% of economic damage, with the funds at risk being the primary determinant with considerations for PR impact and other factors such as exploitability, with a minimum base reward of USD 50 000.

Payouts are handled by the Pendle team directly and are denominated in USD. However, payouts are done in USDT or USDC for payouts under USD 25 000. For payouts above that amount, the reward will have 80% paid in PENDLE with 20% in USDT or USDC.

For additional reference, these and other smart contracts of Pendle can be found on the following Github links:

https://github.com/pendle-finance/pendle-core/tree/b34d265e4fe8e3a6f79bdec1ab88ab2fd49a882c/contracts

https://github.com/pendle-finance/pendle-staking/tree/3708b93a9b93eb11ff005b6da436c914c82008f8/contracts

However, only the smart contracts in the Assets in Scope table are considered as in-scope of the bug bounty program.

Additionally, all vulnerabilities found in the audit reports are considered as out-of-scope.

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

• 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