The BaseGauge contract defines a MAX_SLIPPAGE constant of 100 (1%) that is intended to protect against large changes in weights. However, while this constant is defined and documented (Ref. BaseGauge.md Usage Notes: Slippage protection on weight updates), no actual implementation exists to enforce this slippage protection. The contract allows arbitrary changes to weights without any bounds checking against the defined maximum slippage value.
The lack of slippage protection means that the weight updates can occur with unlimited percentage changes, leaving the system to allow any sudden large changes in reward distribution. This can lead the system to economic lost.
Manual review
Implement slippage protection when the weight is updated.
The contest is live. Earn rewards by submitting a finding.
This is your time to appeal against judgements on your submissions.
Appeals are being carefully reviewed by our judges.