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Contest ran October 14October 20

7 day contest

Tempus Finance contest

Trustless secondary markets on yield.

$50,000 USDC

Total Awards

Tempus Finance contest details

This repo will be made public before the start of the contest. (C4 delete this line when made public)

Glossary
Backing Token Any token that can be deposited to earn some interest via lending or staking. Currently we support ETH, DAI, and USDC.
Yield Bearing Token (YBT) Lending or staking token. Currently we support stETH, aTokens (aDAI, aUSDC), and cTokens (cDAI, cUSDC).
TempusPool Holds all locked Yield Bearing Token, and is used to mint Principals and Yields on deposits, and to burn them on redemption in exchange for Yield Bearing Token.
Principals Zero-coupon bond redeemable for 1 Backing Token after maturity.
Yields Zero-coupon bond redeemable for Backing Tokens after maturity for the amount of yield accrued during the lifetime of the pool. Example: 10% yield would result in 0.1 Backing Token for each Yield share.
Tempus AMM Tempus AMM implementation based on Stable Pools from Balancer v2. It is used for trading Principals against Yields.
LP token Token that represent share in the Tempus AMM. Users get this token when they provide liquidity with Principals and Yields.
Tempus Controller Entry point to the protocol. Used for all user-facing actions related to Tempus Pool. Only Tempus Controller singleton is allowed to operate on a Tempus Pool.

Contest Scope

This contest is open for one week. Submissions are open from the beginning until the end. Representatives from Tempus will be available in the Code Arena Discord to answer any questions during the contest period. The focus of the contest is to try and find any logic errors or ways to drain funds from the protocol in a way that is advantageous for an attacker at the expense of users with funds invested in the protocol. Gas optimization suggestions are also welcome.

Protocol overview

Tempus is a future yield tokenization and fixed rate protocol.

Most forms of yield farming return a variable rate of yield. This means that liquidity providers can be subject to unpredictable fluctuations in their returns. Currently, there is no easy way to obtain a fixed yield or otherwise speculate on the returns in a capital-efficient way. This is where Tempus steps in, allowing users to perform two different use cases, each one offering a unique value proposition:

  • Buy and sell interest rate protection using any supported Yield Bearing Token (such as stETH, cDai and others).
  • Earn swap fees as a liquidity provider by depositing any supported Yield Bearing Token (thus earning additional yield on top of yield earned through other yield farming protocols).

Users can deposit Backing Tokens or Yield Bearing Tokens to mint equal amounts of Principals and Yields. More information can be found in deposit docs.

Redemption has two different flows:

  • Early redemption (this is possible only with equal amount of Principals and Yields)
  • Mature redemption (user can deposit any combination of Principals and Yields after maturity)

Users can redeem their funds into either Backing Tokens or Yield Bearing Tokens. You can find more in redemption docs.

All swaps between Principals and Yields are done via Tempus AMM. Information about our AMM can be found in TempusAMM docs or in our blog post.

Smart contracts

All smart contracts are located in the contracts directory. However, we added mocked implementations of underlying lending/staking protocols (Lido, Aave, and Compound). These mocks are not in focus for this contest, as they are only used for unit testing of the underlying protocols. You can find these mocks in contracts/mocks.

Unit tests are located in test directory.

TempusController

TempusController is used as the main entry point for all protocol related actions. It implements all batching actions as well (e.g. depositAndFix). The contract is implemented in TempusController.sol. It should be safe from reentrancy.

Pools

We have shared abstract implementation for Tempus pools. Abstract TempusPool is implemented in TempusPool.sol. For now we implemented three different concrete pools integrating with Aave, Compound, and Lido:

  • pools/AaveTempusPool.sol
  • pools/CompoundTempusPool.sol
  • pools/LidoTempusPool.sol

Tokens

PoolShare is the base contract for Principals and Yields. PrincipalShare and YieldShare are actual implementations for Principals and Yields. We have also two helper token implementations for fixed supply and owner mintable tokens. Here is a list of all tokens that we want to audit:

  • token/PoolShare.sol
  • token/PrincipalShare.sol
  • token/YieldShare.sol
  • token/ERC20FixedSupply.sol
  • token/ERC20OwnerMintableToken.sol

Utils

We have few utility contracts/libraries:

  • utils/AMMBalancesHelper.sol (does some ratio calculations for AMM balances)
  • utils/PermanentlyOwnable.sol (Ownable without the possibility to change ownership)
  • utils/UntrustedERC20.sol (we use this for transfers of external tokens)
  • math/Fixed256xVar.sol (fixed point math implementation for variable amount of decimals)

TempusAMM

Tempus AMM is implemented as a modification of Balancer Stable Pool. We use Balancer's Vault contracts for our deployments.

  • amm/TempusAMM.sol
  • amm/TempusAMMUserDataHelpers.sol
  • amm/VecMath.sol

Protocols

Contracts in the protocols directory are only interfaces for underlying protocols.

Performed Audits

We did a security audit with Coinspect. The full report is available here.

Setting up and running unit tests

  • Install dependencies with yarn install (node and yarn is a prerequisite)
  • Compile with yarn build
  • Run unit tests with yarn test

Learn more about Tempus

Website Medium Discord Twitter GitHub Docs