Project

Summary

The protocol's joinDAO function contains a static 20% fee structure that lacks flexibility for market adaptation. Modern DeFi protocols require dynamic fee mechanisms to optimize revenue and user engagement across varying market cycles. Without adjustable fees, the protocol may struggle to maintain competitiveness in both bullish and bearish conditions.

Vulnerability Details

Code:

- The platform fee is statically set to 20% within the joinDAO implementation.

- Absence of fee adjustment mechanisms prevents protocol optimization.

Impact

1. Market Inefficiency:

- Rigid fee structure during high-demand periods limits potential earnings

- Fixed high fees during market downturns may deter user participation

2. Revenue Limitations:

- Calculation method causes fee losses on smaller transactions

- No ability to implement strategic fee adjustments for growth

Tools Used

Manual Review

Recommendations

- Integrate an upgradeable fee structure with administrator controls

- Establish a fee ceiling for user protection

- Upgrade calculations to use basis points for enhanced accuracy

- Introduce fee modification events for user transparency