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Able Boysenberry Koala

Medium

Delayed Rewards Due To Lack Of Bumping Incentives

Summary

In the current system, bots are responsible for activating users' earning power once it reaches the eligibility threshold. However, there is no incentive for bots to perform this task, because there are no rewards to be claimed leading to delays in users becoming eligible for rewards.

For example, if Bob stakes assets but his earning power is initially below the threshold, he won’t be eligible for rewards right away. He would need to manually bump his status to become eligible, which could take hours or even days. This delay means Bob misses out on rewards that were supposed to be distributed over time.

Bots, which should ideally automate this process, are not motivated to bump bob because they aren't rewarded for doing so.

To solve this, the system could allow future claimable rewards for bots. This would incentivize bots to trigger the eligibility transition by offering them a reasonable tip. The bot’s reward would be deducted from the user’s claim later (e.g., when Bob claims his rewards after a month). This would ensure users can receive rewards on time and make the system more efficient.

Vulnerability Detail

lack of financial incentive (tip) for bots to perform bumping action from not eligible to eligible due to no claimable rewards for newly staked users.

Impact

Missed Rewards: Users, like Bob, may miss out on rewards if there is a significant delay between the time their earning power becomes eligible and the time they manually trigger the transition. This undermines the intent of the reward system, where users are supposed to earn rewards continuously.

Code Snippet

https://github.com/sherlock-audit/2024-11-tally/blob/b125d1f2b52170a3789b1060a52fc6609e6e2262/staker/src/GovernanceStaker.sol#L471-L514

PoC

  • Bob has 0 earning power and stakes for 1e18.
  • The oracle sets Bob’s earning power to eligible, above the threshold. 
  • However, since bots don’t have incentives to bump Bob to eligible status, Bob has to do this himself. 
  • This delay can be hours or days, meaning he might miss out on rewards he should have earned immediately.
  • It’s impractical for users like Bob to do this manually, and the system should ideally be handled by searching bots.

Tool used

Manual Review

Recommendation

Implement future claimable rewards. This way, a bot could automatically bump Bob’s earning power from ineligible to eligible, and be compensated with a tip, which would be subtracted from Bob’s reward when he claims it later (e.g., a month after).