[SECURITY] Precision Loss in Elastic Supply Mechanism - Responsible Disclosure

Summary

I discovered a precision loss vulnerability in OUSD elastic supply accounting system during my security research.

Key Findings

1. Small holders (100 OUSD) lose ~99 wei per rebase cycle
2. Extreme case: 1 wei holders receive 0 yield completely
3. 93% of rebase events (28/30 tested) cause precision loss
4. Accumulated dust: 746,700 wei lost in invariant testing

Impact

This affects small holders disproportionately, causing fund loss over time.

PoC Available

I have a complete Foundry test suite demonstrating the issue with 5 passing tests. Please contact me at ljapptest@gmail.com for the full PoC code.

Severity

Medium - Fund loss for users, but requires specific conditions.

Please move this to a private security advisory if appropriate. I am available to provide full technical details and PoC code.

Start by treating this as a security disclosure: contact the reporter for the complete Foundry test suite and review the elastic supply accounting around the reported rebase events. Reproduce the five tests and confirm the precision-loss impact before deciding whether to move the report to a private security advisory; done means the vulnerability is triaged with the reporter's technical details secured.