Dahlia / dahlia-protocol

Dahlia is a permissionless, modular lending protocol that emphasizes advanced risk control and liquidity aggregation, built atop of the Royco Protocol. Dahlia markets are isolated and permissionless, allowing any user to create a market between two ERC-20 tokens. This flexibility expands opportunities for long-tail DeFi assets, maximizing both risk management and liquidity options. Learn more about Dahlia at https://docs.dahlia.xyz/

Prize Distribution and Scoring

• Total Prize Pool: $60,000

• The prize distribution has 2 possible triggers:

  • If one or more valid medium severity findings are found, the total pot size is $20,000
  • If one or more valid high severity findings are found, the total pot size is $60,000

• Scoring described in the competition scoring page.

• Findings Severities described in detail on our docs page.

Documentation

• Docs
• Video Walkthrough

In Scope

• Repository: : https://cantina.xyz/code/691ce303-f137-437a-bf34-aef87dfe983b/README.md

• Total LOC: ~2500

• Files: All files under the src catalogue

Out of Scope

• Previous security reports: Cantina audit report

• Expected behaviors such as trusted/untrusted roles and/or any accepted risks

  • WrappedVault shares are tracked in Dahlia which differs from the standard ERC4626 implementation. This design decision is done for gas optimization and simplification of transfer functionality.
  • Royco rewards are calculated based on the initial deposit (principalAssets). This is done to abstract away the interest accrual and its impact on the rewards distribution.
  • getLatestMarketState returns modified market state to account for the latest changes in the same block. This differs from actual stored but private market state that accounts only for previously accrued interest (and executeInterestAccrual logic).

• Automated findings by Lightchaser https://gist.github.com/ChaseTheLight01/ef28a6b2c51f1a330f216417c259a841

Build Instructions

Build instructions can be found in the readme.

Basic POC Test:

• POC rule applies for this competition, all submissions must have POC before end of competition
• Basic POC test

Contact Us

For any issues or concerns regarding this competition, please reach out to the Cantina core team through the Cantina Discord.