Submitted by Evo, also found by 0xcb90f054, Albort, Arjuna, debo, ETHworker, ETHworker, ETHworker, and Spearmint
https://github.com/code-423n4/2025-01-pump-science/blob/main/programs/pump-science/src/state/bonding_curve/curve.rs#L31-L41
Fee transition creates a significant 7.76% economic discontinuity at slot 250-251 boundary, causing incorrect fees implementation as protocol intended.
The issue occurs in the fee calculation logic in curve.rs:
The linear decrease formula during Phase 2 (slots 150-250) creates an incorrect transition:
Key fee percentages showing the discontinuity:
The linear decrease formula coefficients (-8300000 and 2162600_000) were not properly calibrated to reach 1% at slot 250, causing this economic discontinuity at the phase transition.
Typescript simulation:
OUTPUT:
Recalibrate the linear decrease formula coefficients to ensure the fee percentage reaches exactly 1% at slot 250, maintaining a smooth transition between Phase 2 and Phase 3.
Kulture (Pump Science) acknowledged
For this audit, 8 reports were submitted by wardens detailing low risk and non-critical issues. The report highlighted below by Agontuk received the top score from the judge.
The following wardens also submitted reports: 0xcb90f054, ATH, chinepun, DoD4uFN, ElectronicCricket91, KupiaSec, and Sparrow.
