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

Performance fee is lost in `GaugeController` contract

ke1caM

Summary

GaugeController has a distributeRevenue function which is supposed to tranfer the performance fee to FeeCollector. However the fee is never sent and not stored in state variable created for this purpose.

Vulnerability Details

The distributeRevenue splits the revenue between veRAACToken holders and performance fee that is meant to be sent to FeeCollector. We can see that revenueShares is increased but performanceFees state variable is not.

function distributeRevenue(
GaugeType gaugeType,
uint256 amount
) external onlyRole(EMERGENCY_ADMIN) whenNotPaused {
if (amount == 0) revert InvalidAmount();
uint256 veRAACShare = amount * 80 / 100; // 80% to veRAAC holders
uint256 performanceShare = amount * 20 / 100; // 20% performance fee
revenueShares[gaugeType] += veRAACShare;
_distributeToGauges(gaugeType, veRAACShare);
emit RevenueDistributed(gaugeType, amount, veRAACShare, performanceShare);
}

Calculated performanceFee is also not sent in _distributeToGauges function which is called by distributeRevenue.

function _distributeToGauges(
GaugeType gaugeType,
uint256 amount
) internal {
uint256 totalTypeWeight = 0;
uint256[] memory gaugeWeights = new uint256[](_gaugeList.length);
uint256 activeGaugeCount = 0;
​
// First pass: calculate total weight and store gauge weights
for (uint256 i = 0; i < _gaugeList.length; i++) {
address gauge = _gaugeList[i];
if (gauges[gauge].isActive && gauges[gauge].gaugeType == gaugeType) {
gaugeWeights[i] = gauges[gauge].weight;
totalTypeWeight += gaugeWeights[i];
activeGaugeCount++;
}
}
​
if (totalTypeWeight == 0 || activeGaugeCount == 0) return;
​
// Second pass: distribute rewards
for (uint256 i = 0; i < _gaugeList.length; i++) {
address gauge = _gaugeList[i];
if (gauges[gauge].isActive && gauges[gauge].gaugeType == gaugeType) {
uint256 gaugeShare = (amount * gaugeWeights[i]) / totalTypeWeight;
if (gaugeShare > 0) {
IGauge(gauge).notifyRewardAmount(gaugeShare);
}
}
}
}

Impact

performanceFees is not increased and fee is not sent. The fees are lost in the GaugeController due to missing implementation.

Tools Used

Manual Review, Hardhat

Recommendations

Send performanceFee to FeeCollector.

Updates

Lead Judging Commences

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

GaugeController.distributeRevenue calculates 20% performance fee but never transfers or allocates it to any recipient, causing loss of funds

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

GaugeController.distributeRevenue calculates 20% performance fee but never transfers or allocates it to any recipient, causing loss of funds

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