Ribbon Finance Accounting Bug - Revision history

Azoundria at 21:32, 7 May 2023

2023-05-07T21:32:32Z

← Older revision		Revision as of 15:32, 7 May 2023
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	[[File:Ribbonfinance.jpg\|thumb\|Ribbon Finance]]Ribbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged.		[[File:Ribbonfinance.jpg\|thumb\|Ribbon Finance]]Ribbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="ribbonfinancewebsite-4139" /><ref name="ribbonfinancedocs-4143" /><ref name="ribbonfinancesecurity-4144" /><ref name="ribbonfinancepeckshieldaudit-4145" /><ref name="ribbonfinancechainsafeaudit-4146" /><ref name="ribbonfinancequantstampaudit-4147" /><ref name="ribbonfinancethetaaudit-4148" /><ref name="ribbonfinanceopenzeppelin-4149" /><ref name="coinmarketcap-4651" /><ref name="coinmarketcap-623" /><ref name="coinmarketcap-4706" /><ref name="ribbonfinancetwitter-4707" /><ref name="ribbonfinancegithub-4708" /><ref name="etherscan-4709" /><ref name="ribbonfinancemedium-4710" /><ref name="youtube-7323" /><ref name="cypherhunter-7324" />
	<ref name="ribbonfinancewebsite-4139" /><ref name="ribbonfinancedocs-4143" /><ref name="ribbonfinancesecurity-4144" /><ref name="ribbonfinancepeckshieldaudit-4145" /><ref name="ribbonfinancechainsafeaudit-4146" /><ref name="ribbonfinancequantstampaudit-4147" /><ref name="ribbonfinancethetaaudit-4148" /><ref name="ribbonfinanceopenzeppelin-4149" /><ref name="~~coinmarketcapeth~~-4651" /><ref name="coinmarketcap-623" /><ref name="coinmarketcap-4706" /><ref name="ribbonfinancetwitter-4707" /><ref name="ribbonfinancegithub-4708" /><ref name="etherscan-4709" /><ref name="ribbonfinancemedium-4710" /><ref name="youtube-7323" /><ref name="cypherhunter-7324" />

	== About Ribbon Finance ==		== About Ribbon Finance ==
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	!Description		!Description
	\|-		\|-
	\|November 23rd, 2021 ~~12:00:00 AM~~		\|November 23rd, 2021
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~Which policies could have prevented this event from happening?~~

	== References ==		== References ==
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	<ref name="ribbonfinanceopenzeppelin-4149">[https://blog.openzeppelin.com/ribbon-finance-audit/ Ribbon Finance Audit - OpenZeppelin blog] (Dec 5, 2021)</ref>		<ref name="ribbonfinanceopenzeppelin-4149">[https://blog.openzeppelin.com/ribbon-finance-audit/ Ribbon Finance Audit - OpenZeppelin blog] (Dec 5, 2021)</ref>

	<ref name="~~coinmarketcapeth~~-4651">[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 21, 2021)</ref>		<ref name="coinmarketcap-4651">[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 21, 2021)</ref>

	<ref name="coinmarketcap-623">[https://coinmarketcap.com/currencies/bitcoin/historical-data/ Bitcoin price today, BTC live marketcap, chart, and info \| CoinMarketCap] (May 16, 2021)</ref>		<ref name="coinmarketcap-623">[https://coinmarketcap.com/currencies/bitcoin/historical-data/ Bitcoin price today, BTC live marketcap, chart, and info \| CoinMarketCap] (May 16, 2021)</ref>

Azoundria at 23:59, 27 February 2023

2023-02-27T23:59:08Z

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ribbonfinanceaccountingbug.php}} Ribbon FinanceRibbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged. This is a global/international case not involving a specific country. == About Ribbon Finance == "SUSTAINABLE ALPHA FOR EVER..."

2023-01-28T04:02:29Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ribbonfinanceaccountingbug.php}} thumb|Ribbon FinanceRibbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged. This is a global/international case not involving a specific country. == About Ribbon Finance == "SUSTAINABLE ALPHA FOR EVER..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/ribbonfinanceaccountingbug.php}}

[[File:Ribbonfinance.jpg|thumb|Ribbon Finance]]Ribbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged.

This is a global/international case not involving a specific country.

== About Ribbon Finance ==
"SUSTAINABLE ALPHA FOR EVERYONE" "Earn yield on your cryptoassets with DeFi's first structured products protocol." "Ribbon Finance is a new protocol that helps users access crypto structured products for DeFi. It combines options, futures, and fixed income to improve a portfolio's risk-return profile."

"Theta Vault, which is a yield-focused strategy on ETH and WBTC. The vault earns yield on its deposits by running a weekly automated options selling strategy. The vault reinvests the yield earned back into the strategy, effectively compounding the yields for depositors over time."

"Ribbon's v1 and v2 Theta Vault contracts are audited. Despite the audits and security measures we have taken, we advice users to exercise caution and to not risk funds they are not willing to lose." Audits were found provided by Quantstamp, ChainSafe (2 audits), Peckshield, and OpenZeppelin. "We have an ongoing bug bounty on ImmuneFi, with up to $50,000 of bounty. The contracts that are included in the bounty are ETH and WBTC Theta Vaults."

"We recently found a small accounting bug in the Ribbon V2 contracts that charged users an additional week of fees when they were not supposed to be." "The total amounts were 11.79 ETH, 0.18 WBTC and 0.55 AAVE."

"The issue is that users were charged management fees upfront on the week they first deposited their funds. For example, if a user deposits on Thursday, they should only be charged fees on the following week’s Friday because their funds were utilized to write options and earn premiums. The undesirable behavior was that the users were charged the fees upfront."

"The vaults were charging an additional week of fees, even when users' funds were not deployed into the options contracts."

"This means that all V2 users would have been charged an additional week of fees when they should not have been."

"We have written and deployed the fix on the three v2 vaults, ETH, WBTC and AAVE. This ensures that new users are not overcharged."

"We just reimbursed all affected users." "We have distributed the fees back to all the affected users, and all V2 users should get back a rebate into their account." "Next, we used the erroneously collected fees from the DAO to deposit into the vaults. We then distributed the compensation amounts in vault tokens to all users who were affected." "The DAO Treasury has initiated a series of transactions to compensate for losses due to this bug, and the fix is deployed to the vaults so this does not happen again."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Ribbon Finance Accounting Bug
!Date
!Event
!Description
|-
|November 23rd, 2021 12:00:00 AM
|Main Event
|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost has been estimated at $62,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
Which policies could have prevented this event from happening?

== References ==
[https://www.ribbon.finance/ Ribbon Finance: Crypto structured products on Ethereum] (Oct 12)

[https://docs.ribbon.finance/ Introduction to Ribbon - Ribbon Finance] (Dec 4)

[https://docs.ribbon.finance/developers/security Security - Ribbon Finance] (Dec 4)

[https://github.com/ribbon-finance/audit/blob/master/reports/PeckShield-Audit-Report-Ribbon-v1.0.pdf audit/PeckShield-Audit-Report-Ribbon-v1.0.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)

[https://github.com/ChainSafe/audits/blob/main/Ribbon%20Finance/Ribbon-Audit_April-2021.pdf audits/Ribbon-Audit_April-2021.pdf at main · ChainSafe/audits · GitHub] (Dec 4)

[https://github.com/ribbon-finance/audit/blob/master/reports/Quantstamp%20Theta%20Vault.pdf audit/Quantstamp Theta Vault.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)

[https://github.com/ribbon-finance/audit/blob/master/reports/RibbonThetaVault%20V2%20Smart%20Contract%20Review%20And%20Verification.pdf audit/RibbonThetaVault V2 Smart Contract Review And Verification.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)

[https://blog.openzeppelin.com/ribbon-finance-audit/ Ribbon Finance Audit - OpenZeppelin blog] (Dec 4)

[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 20)

[https://coinmarketcap.com/currencies/bitcoin/historical-data/ Bitcoin price today, BTC live marketcap, chart, and info | CoinMarketCap] (May 15)

[https://coinmarketcap.com/currencies/aave/historical-data/ https://coinmarketcap.com/currencies/aave/historical-data/] (Dec 22)

[https://twitter.com/ribbonfinance/status/1463161024295624704 @ribbonfinance Twitter] (Dec 22)

[https://github.com/ribbon-finance/ribbon-v2/pull/159 Fix fee collection by kenchangh · Pull Request #159 · ribbon-finance/ribbon-v2 · GitHub] (Dec 22)

[https://etherscan.io/tx/0x45b9ca0062b64f970035625b94144a7d6d37b69cb9fffb0471e95338cc5ce939 Ethereum Transaction Hash (Txhash) Details | Etherscan] (Dec 22)

[https://ribbonfinance.medium.com/compensation-on-overcharged-deposits-4c62dac1fac8 Compensation On Overcharged Deposits] (Dec 22)

[https://www.youtube.com/watch?v=MrNI3MgvGWI Ribbon Finance Crypto Explained (Automated Options Trading on the Blockchain) - YouTube] (Mar 20)

[https://www.cypherhunter.com/en/p/ribbon-finance/ https://www.cypherhunter.com/en/p/ribbon-finance/] (Mar 20)

← Older revision		Revision as of 17:59, 27 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ribbonfinanceaccountingbug.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/ribbonfinanceaccountingbug.php}}
			{{Unattributed Sources}}

	[[File:Ribbonfinance.jpg\|thumb\|Ribbon Finance]]Ribbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged.		[[File:Ribbonfinance.jpg\|thumb\|Ribbon Finance]]Ribbon Finance realized on November 23rd that, due to a bug in their smart contract, users were being overcharged. The platform compensated affected users in full based on what was overcharged.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="ribbonfinancewebsite-4139" /><ref name="ribbonfinancedocs-4143" /><ref name="ribbonfinancesecurity-4144" /><ref name="ribbonfinancepeckshieldaudit-4145" /><ref name="ribbonfinancechainsafeaudit-4146" /><ref name="ribbonfinancequantstampaudit-4147" /><ref name="ribbonfinancethetaaudit-4148" /><ref name="ribbonfinanceopenzeppelin-4149" /><ref name="coinmarketcapeth-4651" /><ref name="coinmarketcap-623" /><ref name="coinmarketcap-4706" /><ref name="ribbonfinancetwitter-4707" /><ref name="ribbonfinancegithub-4708" /><ref name="etherscan-4709" /><ref name="ribbonfinancemedium-4710" /><ref name="youtube-7323" /><ref name="cypherhunter-7324" />

	== About Ribbon Finance ==		== About Ribbon Finance ==
Line 91:		Line 93:

	== References ==		== References ==
	[https://www.ribbon.finance/ Ribbon Finance: Crypto structured products on Ethereum] (Oct 12)		<references><ref name="ribbonfinancewebsite-4139">[https://www.ribbon.finance/ Ribbon Finance: Crypto structured products on Ethereum] (Oct 13, 2021)</ref>

	[https://docs.ribbon.finance/ Introduction to Ribbon - Ribbon Finance] (Dec 4)		<ref name="ribbonfinancedocs-4143">[https://docs.ribbon.finance/ Introduction to Ribbon - Ribbon Finance] (Dec 5, 2021)</ref>

	[https://docs.ribbon.finance/developers/security Security - Ribbon Finance] (Dec 4)		<ref name="ribbonfinancesecurity-4144">[https://docs.ribbon.finance/developers/security Security - Ribbon Finance] (Dec 5, 2021)</ref>

	[https://github.com/ribbon-finance/audit/blob/master/reports/PeckShield-Audit-Report-Ribbon-v1.0.pdf audit/PeckShield-Audit-Report-Ribbon-v1.0.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)		<ref name="ribbonfinancepeckshieldaudit-4145">[https://github.com/ribbon-finance/audit/blob/master/reports/PeckShield-Audit-Report-Ribbon-v1.0.pdf audit/PeckShield-Audit-Report-Ribbon-v1.0.pdf at master · ribbon-finance/audit · GitHub] (Dec 5, 2021)</ref>

	[https://github.com/ChainSafe/audits/blob/main/Ribbon%20Finance/Ribbon-Audit_April-2021.pdf audits/Ribbon-Audit_April-2021.pdf at main · ChainSafe/audits · GitHub] (Dec 4)		<ref name="ribbonfinancechainsafeaudit-4146">[https://github.com/ChainSafe/audits/blob/main/Ribbon%20Finance/Ribbon-Audit_April-2021.pdf audits/Ribbon-Audit_April-2021.pdf at main · ChainSafe/audits · GitHub] (Dec 5, 2021)</ref>

	[https://github.com/ribbon-finance/audit/blob/master/reports/Quantstamp%20Theta%20Vault.pdf audit/Quantstamp Theta Vault.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)		<ref name="ribbonfinancequantstampaudit-4147">[https://github.com/ribbon-finance/audit/blob/master/reports/Quantstamp%20Theta%20Vault.pdf audit/Quantstamp Theta Vault.pdf at master · ribbon-finance/audit · GitHub] (Dec 5, 2021)</ref>

	[https://github.com/ribbon-finance/audit/blob/master/reports/RibbonThetaVault%20V2%20Smart%20Contract%20Review%20And%20Verification.pdf audit/RibbonThetaVault V2 Smart Contract Review And Verification.pdf at master · ribbon-finance/audit · GitHub] (Dec 4)		<ref name="ribbonfinancethetaaudit-4148">[https://github.com/ribbon-finance/audit/blob/master/reports/RibbonThetaVault%20V2%20Smart%20Contract%20Review%20And%20Verification.pdf audit/RibbonThetaVault V2 Smart Contract Review And Verification.pdf at master · ribbon-finance/audit · GitHub] (Dec 5, 2021)</ref>

	[https://blog.openzeppelin.com/ribbon-finance-audit/ Ribbon Finance Audit - OpenZeppelin blog] (Dec 4)		<ref name="ribbonfinanceopenzeppelin-4149">[https://blog.openzeppelin.com/ribbon-finance-audit/ Ribbon Finance Audit - OpenZeppelin blog] (Dec 5, 2021)</ref>

	[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 20)		<ref name="coinmarketcapeth-4651">[https://coinmarketcap.com/currencies/ethereum/historical-data/ https://coinmarketcap.com/currencies/ethereum/historical-data/] (Dec 21, 2021)</ref>

	[https://coinmarketcap.com/currencies/bitcoin/historical-data/ Bitcoin price today, BTC live marketcap, chart, and info \| CoinMarketCap] (May 15)		<ref name="coinmarketcap-623">[https://coinmarketcap.com/currencies/bitcoin/historical-data/ Bitcoin price today, BTC live marketcap, chart, and info \| CoinMarketCap] (May 16, 2021)</ref>

	[https://coinmarketcap.com/currencies/aave/historical-data/ https://coinmarketcap.com/currencies/aave/historical-data/] (Dec 22)		<ref name="coinmarketcap-4706">[https://coinmarketcap.com/currencies/aave/historical-data/ https://coinmarketcap.com/currencies/aave/historical-data/] (Dec 23, 2021)</ref>

	[https://twitter.com/ribbonfinance/status/1463161024295624704 @ribbonfinance Twitter] (Dec 22)		<ref name="ribbonfinancetwitter-4707">[https://twitter.com/ribbonfinance/status/1463161024295624704 @ribbonfinance Twitter] (Dec 23, 2021)</ref>

	[https://github.com/ribbon-finance/ribbon-v2/pull/159 Fix fee collection by kenchangh · Pull Request #159 · ribbon-finance/ribbon-v2 · GitHub] (Dec 22)		<ref name="ribbonfinancegithub-4708">[https://github.com/ribbon-finance/ribbon-v2/pull/159 Fix fee collection by kenchangh · Pull Request #159 · ribbon-finance/ribbon-v2 · GitHub] (Dec 23, 2021)</ref>

	[https://etherscan.io/tx/0x45b9ca0062b64f970035625b94144a7d6d37b69cb9fffb0471e95338cc5ce939 Ethereum Transaction Hash (Txhash) Details \| Etherscan] (Dec 22)		<ref name="etherscan-4709">[https://etherscan.io/tx/0x45b9ca0062b64f970035625b94144a7d6d37b69cb9fffb0471e95338cc5ce939 Ethereum Transaction Hash (Txhash) Details \| Etherscan] (Dec 23, 2021)</ref>

	[https://ribbonfinance.medium.com/compensation-on-overcharged-deposits-4c62dac1fac8 Compensation On Overcharged Deposits] (Dec 22)		<ref name="ribbonfinancemedium-4710">[https://ribbonfinance.medium.com/compensation-on-overcharged-deposits-4c62dac1fac8 Compensation On Overcharged Deposits] (Dec 23, 2021)</ref>

	[https://www.youtube.com/watch?v=MrNI3MgvGWI Ribbon Finance Crypto Explained (Automated Options Trading on the Blockchain) - YouTube] (Mar 20)		<ref name="youtube-7323">[https://www.youtube.com/watch?v=MrNI3MgvGWI Ribbon Finance Crypto Explained (Automated Options Trading on the Blockchain) - YouTube] (Mar 20, 2022)</ref>

	[https://www.cypherhunter.com/en/p/ribbon-finance/ https://www.cypherhunter.com/en/p/ribbon-finance/] (Mar 20)		<ref name="cypherhunter-7324">[https://www.cypherhunter.com/en/p/ribbon-finance/ https://www.cypherhunter.com/en/p/ribbon-finance/] (Mar 20, 2022)</ref></references>