Project

Summary

The protocol's current fee structure suffers from precision loss in low-value transactions due to integer arithmetic limitations. For small tier prices, the 20% fee calculation rounds down to zero, eliminating protocol revenue. Furthermore, the test suite fails to account for proper token decimal scaling, leaving potential issues undiscovered.

Vulnerability Details

Protocol fee calculation in MembershipFactory.sol:

https://github.com/Cyfrin/2024-11-one-world/blob/1e872c7ab393c380010a507398d4b4caca1ae32b/contracts/dao/MembershipFactory.sol#L140

Impact

1. Protocol Revenue Impacts:

- Zero fees collected on small transactions

- Precision loss multiplied across multiple users

- Economic model undermined by calculation method

Tools Used

Manual Review

Recommendations

1. Scale calculations to handle token decimals

2. Set minimum fee thresholds