Sparkn

CodeFox Inc.
DeFiFoundryProxy
15,000 USDC
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Submission Details
Severity: low
Valid

Insufficient Funds in Contests May Result in Unpaid Supporters

Summary

Contests are set up with the possibility that there might not be enough funds or no sponsors at all. Supporters might join without knowledge of the sponsored amount and perform services. However, there might not be any compensation for their services.

Vulnerability Details

When a contest is set up, sponsors are supposed to fund the project while supporters are performing the services. Supporters might do the services thinking that funds are on the way. But there might not get paid enough for their services.

POC: Unpaid Supporters due to Insufficient Funds

Setup:

  • Owner initiates a new Contest.

  • Sponsors may or may not fund it.

  • Supporters, believing the contest is funded or will get funded, begin resolving challenges.

  • The contest isn't fully funded or funded at all, so the proxy isn't deployed. The organizer decide to not deploy the proxy.

  • The expiration period passes without the proxy being deployed. The owner calls the deployProxyAndDistributeByOwner function.

  • Problem: The challenges are getting resolved. But the supporters are not getting paid or paid enough for their services.

Impact

  • Loss for the supporters their services are not compensated enough.

  • This can lead to a lack of trust in the protocol, discouraging supporters from participating in future contests.

Tools Used

Manual Review

Recommendations

Ensure that a minimum funding threshold is met before allowing supporters to proceed with their submissions. That way they are sure that at least they will be compensated with a minimal funding amount.

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