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

Gauge distributors don't actually distribute rewards

pyro

Summary

Gauge distributors don't actually distribute rewards

Vulnerability Details

distributeRewards does not send any reward tokens, just allocates the amount, meaning that there should be rewards which would be claimable by the users, but with no tokens inside the contract no-one will be able to claim them.

https://github.com/Cyfrin/2025-02-raac/blob/main/contracts/core/governance/gauges/GaugeController.sol#L323

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);
}

Same is with distributeRevenue

https://github.com/Cyfrin/2025-02-raac/blob/main/contracts/core/governance/gauges/GaugeController.sol#L511

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;
​
// They miss `performanceShare`, missing 20%, funds locked
_distributeToGauges(gaugeType, veRAACShare);
// No tokens sent
emit RevenueDistributed(gaugeType, amount, veRAACShare, performanceShare);
}

Note that they also miss including the performance fee.

Impact

No rewards will be distributed as we don't send any tokens

Tools Used

Manual review

Recommendations

Either mint or send tokens there.

Updates

Lead Judging Commences

inallhonesty Lead Judge 7 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

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

inallhonesty Lead Judge 7 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

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

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