Best Carbon Eagle - DEFAULT_PRICE should be 0.001 ether

[sherlock-admin2]

Best Carbon Eagle

High

DEFAULT_PRICE should be 0.001 ether

Summary

In ReputationMarket.sol, DEFAULT_PRICE is set to 0.01 ether however if you look at the code in initialize, it is meant to be 0.001 ether instead.

function initialize(
  address owner,
  address admin,
  address expectedSigner,
  address signatureVerifier,
  address contractAddressManagerAddr
) external initializer {
  __accessControl_init(
    owner,
    admin,
    expectedSigner,
    signatureVerifier,
    contractAddressManagerAddr
  );
  __UUPSUpgradeable_init();
  enforceCreationAllowList = true;
  // Default market configurations:

  // Default tier
  // - Minimum viable liquidity for small/new markets
  // - 0.002 ETH initial liquidity
  // - 1 vote each for trust/distrust (volatile price at low volume)
  marketConfigs.push(
    MarketConfig({
      initialLiquidity: 2 * DEFAULT_PRICE,
      initialVotes: 1,
      basePrice: DEFAULT_PRICE
    })
  );

  // Deluxe tier
  // - Moderate liquidity for established profiles
  // - 0.05 ETH initial liquidity
  // - 1,000 votes each for trust/distrust (moderate price stability)
  marketConfigs.push(
    MarketConfig({
      initialLiquidity: 50 * DEFAULT_PRICE,
      initialVotes: 1000,
      basePrice: DEFAULT_PRICE
    })
  );

  // Premium tier
  // - High liquidity for stable price discovery
  // - 0.1 ETH initial liquidity
  // - 10,000 votes each for trust/distrust (highly stable price)
  marketConfigs.push(
    MarketConfig({
      initialLiquidity: 100 * DEFAULT_PRICE,
      initialVotes: 10000,
      basePrice: DEFAULT_PRICE
    })
  );
}

Impact

Wrong default price variable and it is permanent since there is no function to reset it.

Code snippet

https://github.com/sherlock-audit/2024-11-ethos-network-ii/blob/57c02df7c56f0b18c681a89ebccc28c86c72d8d8/ethos/packages/contracts/contracts/ReputationMarket.sol#L79