OnRe EVM
Summary
OnRe EVM is a centralized reinsurance market, allowing Users to purchase and redeem managed reinsurance ERC-20 tokens against supported assets through admin-configured _Offers_. The protocol accounts for funds through four vault types: liquidity, proceeds, fee, and buffer reserve. Liquidity vaults fund redemptions and receive purchase proceeds up to a configured target. Proceeds vaults receive the remainder. Fee vaults collect trading fees in the input token, as well as management and performance fees minted through the Buffer mechanism. Buffer reserve vaults hold additional managed tokens accrued through that mechanism, which the admin can burn to offset reported losses in backing assets. These vaults track separate balances, but their tokens are held by the same upgradeable Diamond contract; managed tokens are independently upgradeable proxies. Offers can be executed through one of three authorization flows: permissioned, permissionless, and worker-processed. Permissioned execution uses an authorized approver’s signature. Permissionless trades settle atomically through an administrator-configured intermediary account. Worker-processed redemptions have users escrow their tokens and an authorized worker fills requests partially or completely at the price and fee applicable to each fill. Users can cancel the unfilled portion and recover their unfilled escrowed tokens at any time. Rather than pricing via oracles or a constant-product, each managed token has a USD `Pricer` that derives its quoted net asset value (NAV) from admin-supplied pricing schedules. Offers either execute at this NAV or use a proprietary AMM (`PropAmm`). Unlike traditional constant-product AMMs comparing the reserves of two tokens in a liquidity pool, the `PropAMM` prices purchases at NAV and discounts redemptions according to available liquidity, recent net selling pressure, and sell frequency. The audit identified several unresolved medium-severity issues. In the Prop AMM, sell-pressure decay is tracked using lazily updated, event-driven epochs rather than fixed time boundaries, which can freeze penalties during inactivity, unfairly extend haircuts, and incentivize users to stop trading until a favorable reset threshold is reached (ONRE-1). The buffer accrual logic also applies only the currently active APR to the entire elapsed period. If pricing vectors changed during inactivity, fees may be materially under- or over-minted (ONRE-2). Another important economic risk is that listed assets are effectively priced at par in USD terms. If multiple stablecoins are supported and one depegs, attackers can arbitrage the protocol and drain redemption reserves (ONRE-3).
Issues (11)
Low | Medium | High | Critical | Total | |
|---|---|---|---|---|---|
Not fixed | - | - | - | - | 0 |
Acknowledged | 6 | 2 | - | - | 8 |
Fixed | 2 | 1 | - | - | 3 |
| Total | 8 | 3 | 0 | 0 | 11 |