Project
One World
NFTDeFi
15,000 USDC
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Submission Details
Severity: medium
Invalid

Platform Fee Loss Due to Zero DAO Membership Price

kamuik16

Summary

The MembershipFactory contract has a vulnerability allowing DAO creators to set the membership tier price to zero or a very low value, resulting in zero platform fees for each user joining the DAO. This enables users to participate in a DAO without paying the platform fees, allowing free protocol usage.

Vulnerability Details

The vulnerability arises from a lack of price validation for each tier in the createNewDAOMembership function. DAO creators can set any price, including zero, for a membership tier. Since the platform fee calculation is based on a percentage of the tier price, setting the price to zero results in zero platform fees:

uint256 platformFees = (20 * tierPrice) / 100;

If tierPrice is zero, platformFees will also be zero, allowing users to join without contributing to the platform fees.

PoC:

function test_lose_of_fees_poc() public {
TierConfig memory tierConfig1;
tierConfig1.amount = 10;
tierConfig1.price = 0;
tierConfig1.power = 0;
tierConfig1.minted = 0;
​
TierConfig memory tierConfig2;
tierConfig2.amount = 10;
tierConfig2.price = 0;
tierConfig2.power = 1;
tierConfig2.minted = 0;
​
tierConfigs.push(tierConfig1);
tierConfigs.push(tierConfig2);
​
DAOInputConfig memory config;
config.ensname = "test";
config.daoType = DAOType.PUBLIC;
config.currency = address(weth);
config.maxMembers = 20;
config.noOfTiers = 2;
​
address daoMembershipAddress = membershipFactory.createNewDAOMembership(config, tierConfigs);
​
uint256 before_balance = weth.balanceOf(owpWalletAddress);
​
vm.startPrank(user);
​
vm.expectEmit();
emit UserJoinedDAO(user, daoMembershipAddress, 0);
​
membershipFactory.joinDAO(daoMembershipAddress, 0);
​
vm.stopPrank();
​
uint256 after_balance = weth.balanceOf(owpWalletAddress);
​
assertEq(before_balance, after_balance);
}

Impact

Zero revenue collection on user onboarding to DAOs.

Tools Used

Manual Review

Recommendations

A minimum price check should be introduced for each tier in the createNewDAOMembership function to address this issue.

Updates

Lead Judging Commences

0xbrivan2 Lead Judge 10 months ago
Submission Judgement Published
Invalidated
Reason: Incorrect statement

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