Overpayment Risk in Auction Due to Fixed 1:1 Redemption Rate
Description
The auction allows users to buy ZENO at a dynamically decreasing price, but redemption is fixed at 1 ZENO = 1 USDC. If a user purchases ZENO at a price above 1 USDC, they incur a guaranteed loss upon redemption. This creates an unfair disadvantage for early buyers and may discourage participation.
Auction.buy():* https://github.com/Cyfrin/2025-02-raac/blob/89ccb062e2b175374d40d824263a4c0b601bcb7f/contracts/zeno/Auction.sol#L84-L97*
ZENO.Redeem(): https://github.com/Cyfrin/2025-02-raac/blob/89ccb062e2b175374d40d824263a4c0b601bcb7f/contracts/zeno/ZENO.sol#L46-L74
Recommendations
Ensure Auction.getPrice() < $1
Appeal created
ZENO.sol implements fixed 1:1 redemption with USDC regardless of auction purchase price, breaking zero-coupon bond economics and causing user funds to be permanently lost
Prize pool breakdown
Live
The contest is live. Earn rewards by submitting a finding.
Appeals
This is your time to appeal against judgements on your submissions.
Appeals Review
Appeals are being carefully reviewed by our judges.