Core Contracts
Regnum Aurum Acquisition Corp
HardhatReal World AssetsNFT
77,280 USDC
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Submission Details
Severity: high
Valid

Tokens are not sent to gauges when rewards are distributed.

ke1caM

Summary

When GaugeController distributes rewards to gauges it does not send and tokens to these contracts.

Vulnerability Details

To distribute the rewards to gauges the distributeRewards function is used. During this function call there isn't implemented any transfer of the tokens.

/**
* @notice Distributes rewards to a gauge
* @dev Calculates and transfers rewards based on gauge weight
* @param gauge Address of gauge to distribute rewards to
*/
function distributeRewards(
address gauge
) external override nonReentrant whenNotPaused {
if (!isGauge(gauge)) revert GaugeNotFound();
if (!gauges[gauge].isActive) revert GaugeNotActive();
uint256 reward = _calculateReward(gauge);
if (reward == 0) return;
IGauge(gauge).notifyRewardAmount(reward);
emit RewardDistributed(gauge, msg.sender, reward);
}

It is expected that this function should send rewards to the gauges. The comments above the function state that, it calculates and transfers rewards based on gauge weight.

notifyRewardAmount function in BaseGauge expects direct tranfer of tokens but it is not done using distributeRewards or any other function called during this function call.

function notifyRewardAmount(uint256 amount) external override onlyController updateReward(address(0)) {
if (amount > periodState.emission) revert RewardCapExceeded();
rewardRate = notifyReward(periodState, amount, periodState.emission, getPeriodDuration());
periodState.distributed += amount;
uint256 balance = rewardToken.balanceOf(address(this));
if (rewardRate * getPeriodDuration() > balance) {
revert InsufficientRewardBalance();
}
lastUpdateTime = block.timestamp;
emit RewardNotified(amount);
}
​

Impact

Rewards are not sent to Gauges which prevents rewards distribution. Users will not receive the rewards which leads to loss of funds.

Tools Used

Manual Review, Hardhat

Recommendations

Send tokens to Gauge during distributeRewards function call.

Updates

Lead Judging Commences

inallhonesty Lead Judge 6 months ago
Submission Judgement Published
Validated
Assigned finding tags:

GaugeController notifies gauges of rewards without transferring tokens in both distributeRewards and _distributeToGauges functions, breaking reward distribution

inallhonesty Lead Judge 6 months ago
Submission Judgement Published
Validated
Assigned finding tags:

GaugeController notifies gauges of rewards without transferring tokens in both distributeRewards and _distributeToGauges functions, breaking reward distribution

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