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sherlock-audit / 2024-06-velocimeter-judging

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1nc0gn170 - No mechanism is implemented to withdraw accured fees in Voting Escrow & Gauge #675

Closed sherlock-admin2 closed 3 months ago

sherlock-admin2 commented 4 months ago

1nc0gn170

Medium

No mechanism is implemented to withdraw accured fees in Voting Escrow & Gauge

Summary

Lack of fee withdrawal functionality in Voting Escrow & Gauge contracts disincentivizes users from locking their LP tokens, potentially leading to locked fees and reduced governance participation.

Vulnerability Detail

Users are required to lock LP tokens in the Voting Escrow contract to obtain veBVM tokens and participate in governance voting. However, by doing so, they forfeit the ability to collect fees generated from the corresponding pool.

This results in fees accumulating in Voting Escrow & Guage contracts with no mechanism for users to access them, potentially disincentivizing users from locking their LP tokens.

Impact

This issue can lead to a significant portion of fees being locked in the Voting Escrow contract, inaccessible to users. It disincentivizes participation in the voting system.

Code Snippet

https://github.com/sherlock-audit/2024-06-velocimeter/blob/main/v4-contracts/contracts/VotingEscrow.sol#L18

Tool used

Manual Review

Recommendation

Add functionality that allows users to withdraw the fees deriving from the LP they locked.