Proposal 24: MCDEX Bug Bounty Program

Proposal 24


Bug bounty program incentivize developers to look through the code and fix vulnerabilities, protecting users’ funds and protocol integrity. It’s time for MCDEX to setup a formal bug bounty program, in order to safely incentive responsible disclosure of bugs and exploits.

Immunefi ( ) is becoming a refence point in Defi space for bug discovery and its community has already helped uncover major bugs in some protocols. There are over 23 million in bounties available on the platform. Therefore, I propose to set up a program on Immunefi.


This bug bounty program covers MCDEX smart contracts and its critical frontend software and is focused on the prevention of loss of user funds.

Rewards by threat level

This is a simplified 5-level scale, with separate scales for websites/apps and smart contracts/blockchains, encompassing everything from consequence of exploitation to privilege required to likelihood of a successful exploit.

Smart Contracts and Blockchain

Critical USD 50 000 - USD 100 000

High USD 5 000 - USD 20 000

Medium USD 2 000 - USD 5 000

Low Up to USD 2 000

Website and Apps

Critical USD 7 500 - USD 15 000

High Up to USD 5 000

Medium Up to USD 1 000

All web and app bugs must come with a Proof of Concept (PoC) in order to be accepted. All web and app bug reports without a PoC will be rejected with a request for a PoC. Critical web and app bugs can only be paid the full USD 15 000 if there is a vulnerability directly leading to a loss in user funds that don’t require social engineering or extensive non-normal user actions.

Rewards for smart contract vulnerabilities are variable based on their exploitability, and other factors deemed relevant by the MCDEX team. For critical vulnerabilities, the payout is capped at 10% of economic damage and is the main determinant of the reward amount. Bug reports for critical vulnerabilities also require PoC. If no PoC is submitted but the bug is still validated and addressed, only USD 50 000 will be rewarded regardless of economic damage.

Recommendations for fixes are required for a reward. Though bug reports without recommendations for fixes may be considered, the resulting reward cannot be the maximum amount.

The final decision for all rewards are at the discretion of MCDEX.

Payouts are handled by the MCDEX DAO directly and are denominated in USD. Payouts are done in USDC.

Assets in Scope

Only web/app vulnerabilities that directly affect the web/app assets listed in this table and their subfolders are accepted within the bug bounty program. All others are out-of-scope.

Under the Github link, only mainnet smart contract vulnerabilities are considered in-scope for the bug bounty program. Smart contracts labeled as testnet are out-of-scope.

Vulnerabilities surfaced in the audits provided by ConsenSys, OpenZeppelin and Quantstamp are not considered in scope of the bug bounty program even if they affect the assets listed in this table.

Prioritized vulnerabilities

We are especially interested in receiving and rewarding vulnerabilities of the following types:

Smart Contracts and Blockchain

· Re-entrancy

· Logic errors

· including user authentication errors

· Solidity/EVM details not considered

· including integer over-/under-flow

· Including rounding errors

· including unhandled exceptions

· Trusting trust/dependency vulnerabilities

· including composability vulnerabilities

· Oracle failure/manipulation

· Novel governance attacks

· Economic/financial attacks

· including flash loan attacks

· Congestion and scalability

· including running out of gas

· including block stuffing

· including susceptibility to frontrunning

· Consensus failures

· Cryptography problems

· Signature malleability

· Susceptibility to replay attacks

· Weak randomness

· Weak encryption

· Susceptibility to block timestamp manipulation

· Missing access controls / unprotected internal or debugging interfaces

Websites and Apps

· Remote Code Execution

· Trusting trust/dependency vulnerabilities

· Vertical Privilege Escalation

· XML External Entities Injection

· SQL Injection


· Horizontal Privilege Escalation

· Stored XSS

· Reflective XSS with impact

· CSRF with impact

· Direct object reference

· Internal SSRF

· Session fixation

· Insecure Deserialization


· SSL misconfigurations

· SSL/TLS issues (weak crypto, improper setup)

· URL redirect

· Clickjacking (must be accompanied with PoC)

· Misleading Unicode text (e.g. using right to left override characters)

Out of Scope & Rules

The following vulnerabilities are excluded from the rewards for this bug bounty program:

· Attacks that the reporter has already exploited themselves, leading to damage

· Attacks requiring access to leaked keys/credentials

· Attacks requiring access to privileged addresses (governance, strategist)

Smart Contracts and Blockchain

· Incorrect data supplied by third party oracles

· Not to exclude oracle manipulation/flash loan attacks

· Basic economic governance attacks (e.g. 51% attack)

· Lack of liquidity

· Best practice critiques

· Sybil attacks

Websites and Apps

· Theoretical vulnerabilities without any proof or demonstration

· Content spoofing / Text injection issues

· Self-XSS

· Captcha bypass using OCR

· CSRF with no security impact (logout CSRF, change language, etc.)

· Missing HTTP Security Headers (such as X-FRAME-OPTIONS) or cookie security flags (such as “httponly”)

· Server-side information disclosure such as IPs, server names, and most stack traces

· Vulnerabilities used to enumerate or confirm the existence of users or tenants

· Vulnerabilities requiring unlikely user actions

· URL Redirects (unless combined with another vulnerability to produce a more severe vulnerability)

· Lack of SSL/TLS best practices

· DDoS vulnerabilities

· Attacks requiring privileged access from within the organization

· Feature requests

· Best practices

The following activities are prohibited by bug bounty program:

· Any testing with mainnet or public testnet contracts; all testing should be done on private testnets

· Any testing with pricing oracles or third party smart contracts

· Attempting phishing or other social engineering attacks against our employees and/or customers

· Any testing with third party systems and applications (e.g. browser extensions) as well as websites (e.g. SSO providers, advertising networks)

· Any denial of service attacks

· Automated testing of services that generates significant amounts of traffic

· Public disclosure of an unpatched vulnerability in an embargoed bounty


According to Immunefi service fee structure, they will charge 10% performance fee on reward paid out and service fee is also paid by MCDEX DAO. If there is a bug report with a severity level that’s worth $1000 as stated in the details below, MCDEX DAO will pay out $1000 to the reporter and $100 to Immunefi.


Voting time is to be determined after the community discussion

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The Bug Bounty is necessary. But, I don’t think the team should pay the bounty. Since we have raised funds for MCDEX DAO, the DAO should pay for it.

1 Like

Thanks, Jie. You are right, based on MCDEX DAO governance policy it should pay for the bounty program. Proposal is updated.

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I’m Travin Keith, one of the Co-Founders of Immunefi. I’m happy to see this proposal up and can help answer questions the MCDEX community may have about Immunefi.


Hi everyone,

The MCDEX bug bounty program has been going well so far! We are grateful to have MCDEX as one of our clients.

I’m happy to report that on the 14th of June, a critical smart contract vulnerability with bug report number 1926 was escalated to the MCDEX team through a report by one of our whitehat hacker community members instead of being exploited by a blackhat hacker. After evaluation by the MCDEX team, it was classified as valid with the designated payout of USD 50 000, which will be done in USDC as stated according to the MCDEX bug bounty program.

A postmortem about the bug report is being worked on by the Immunefi team and more details about the bug report itself will be published soon after coordination with the MCDEX team.

As with the setup of Immunefi, the MCDEX DAO will need to reward the bug bounty hunter directly and not through Immunefi, with Immunefi simply providing the address of the bug bounty hunter to MCDEX. Rewarding through Immunefi will not be possible as we don’t have the necessary licenses to be a payment service provider. Additionally, we wouldn’t be able to do it in any case otherwise we would need to KYC the bug bounty hunter to be compliant within our legal jurisdiction and the MCDEX bug bounty program currently does not require KYC.

As for Immunefi’s fee of 10%, which will be USD 5 000, also payable in USDC, we will be able to issue an invoice or receipt for this.

We would like to thank the whitehat hacker for responsibly disclosing the vulnerability and thus preventing issues for MCDEX users. We would also like to thank the MCDEX team for being responsive throughout the entire process.

Once the postmortem is done, we will post it here as well.

Cool! Thank Immunefi and the bug hunter!

1 Like

Hi everyone,

We’ve published the postmortem now a few days ago, which can be read on our Medium blog here - MCDEX Insufficient Validation Bug Fix Postmortem | by Immunefi | Immunefi | Jul, 2021 | Medium

As revealed on the postmortem, I’m happy to announce that the bug bounty hunter is Lucash-dev, a member of our whitehat scholarship.

Additionally, I can confirm that the address for Lucash-dev is 0xC111Ae6c34c245cA6a1d46E1565eFc34492427B5

Thank you once again to everyone involved!