Fjord Token Staking

Summary

The auction system does not extend the auction time when a bid is placed near the end, which allows users to make large last-minute bids, potentially disadvantaging other bidders.

Vulnerability Details

The auction system currently lacks a time extension feature for bids made in the final moments. This oversight allows users to place substantial bids just before the auction ends, reducing the opportunity for other participants to compete fairly and potentially lowering the price of tokens for the late bidder.

Impact

• Unfair Bidding Advantage: Late bids can skew auction results by allowing users to acquire tokens at lower prices, disadvantaging other participants who bid earlier. without giving other bidders to bid again.

• Market Fairness: This practice undermines the fairness and integrity of the auction process.

Tools Used

• Manual Code Review

Recommendations

1. Implement Time Extension Mechanism:

   • Fixed Extension: Introduce a fixed extension period (e.g., 20 minutes) if a bid is placed within the last X minutes of the auction.

   • Dynamic Extension: Alternatively, extend the auction incrementally (e.g., by 30 min) with each new bid placed in the final period.

Implementing these changes will improve auction fairness and prevent manipulation through last-minute bids.