Royco Dawn

Royco (v2) Dawn, is a perpetual risk tranching protocol. Dawn tranches on and off chain yield opportunities into senior and junior tranches.

The senior tranche is protected, at minimum, from a market defined drawdown percentage in the underlying investment by virtue of the junior tranche serving as first-loss capital. In exchange, the junior tranche receives a portion of senior yield in addition to its own yield, effectively making them leveraged.

The senior tranche yield split between the two tranches is continuously adapting to supply and demand signals from each tranche, allowing the market to price each opportunity in real time.

Prize distribution and scoring

• Total Prize Pool: $50,000

• Only High severity findings will be rewarded in this competition.

• Please note that the competition will be judged by the Royco Team.

• Scoring described in the competition scoring page.

• Findings Severities described in detail on our docs page.

Documentation

• Code is comprehensively commented.
  • The flow of contract interactions in Dawn is tranche -> kernel -> accountant -> YDM and back.
  • Here is a succinct description of the mechanism https://royco.gitbook.io/royco-dawn (some verbiage used here is different than that used in the code).

Scope

• Repository: https://github.com/roycoprotocol/royco-dawn/tree/cantina_competition
• Commit: d5f9360cf8c2d49571b16c311ba86b085e5acd8e
• Files: src/ directory
  • Funds sent to non-whitelisted addresses or addresses not specified by whitelisted addresses
  • Funds permanently locked / unrecoverable

Build Instructions

• Forge build
• Basic POC test

Out of scope

• Automated findings by Lightchaser
• Oracle, NAV, or share price manipulation
• Whitelisted parties behaving maliciously (assumed trusted, funds recoverable)
• Incorrect amounts sent to whitelisted parties or their specified recipients (reversible)
• External protocol bugs
• Centralization risks
• MEV, gas griefing, frontrunning
• Frontend or off-chain components

Basic POC test

• Standard POC rule applies for this competition. All high and medium severity submissions must include a coded POC.

Contact Us

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