Lines of code

Vulnerability details

Impact

When transferring tokens to other chain, the tokens in the source chain are burned - if they are external they will be transferred to the AxelarGateway, otherwise they will be burned. In the target chain the same amount of tokens will be minted for the user - if it is external it will be transferred to him from the AxelarGateway, otherwise it will be minted to him.
But there is a problem - if the AxelarGateway doesn’t have the needed amount of token for some reason, the _callERC20Token with the transfer function selector will fail and return false, which will make the _mintToken function revert. Because it reverted, the user won’t get his funds on the destination chain, although he payed the needed amount in the source chain.

Tools Used

VS Code and Remix

Recommended Mitigation Steps

Instead of reverting when the transfer is not successful, simply call the callContractWithToken with the source chain as the destination chain in order to return the user his funds.

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