Project

Summary

The ability for DAO creators and members to collude and lower membership prices before purchase permits fee circumvention.

Vulnerability Details

In the joinDAO function, platformFees are calculated as 20% of the DAO membership price:

However, the DAO creator and a member could collude to avoid this fee by calling updateDAOMembership to temporarily lower the price to near-zero before purchase, effectively bypassing the protocol fees. (The real price is paid elsewhere.)

Impact

This loophole allows DAO creators and members to avoid paying platform fees, reducing protocol revenue and compromising the fee model.

Tools Used

Manual

Recommendations

It is recommended to take this scenario into consideration. Potential solutions include setting a minimum floor price or limiting frequent price changes.