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code423n4Code4renaCODE423N4:2023-07-POOLTOGETHER-FINDINGS-ISSUES-451
HistoryJul 14, 2023 - 12:00 a.m.

balanceOf method can be manipulate to liquidated vault

2023-07-1400:00:00
Code4rena
github.com
2
balanceof manipulation
liquidated vault
erc20 token
mint vault shares
mitigation steps

Lines of code

Vulnerability details

Impact

Deriving price from balanceOf can be manipulated to liquidate vault see example <https://solodit.xyz/issues/deriving-price-with-balanceof-is-dangerous-spearbit-connext-pdf&gt;
Attacker can provide ERC20 token to the vaultAsset and mint vault shares. The deposited tokens will then be withdrawn with having same shares in the vault.
The shares then will be used to liquidate the vault and causing loss of funds for other depositors.

#Proof of Concept

Tools Used

Manual Review/ previous audit findings.

Recommended Mitigation Steps

The method in this regard is based on interlinking the assets provided with vault share with function of burning vault shares when asset provided is withdrawn.

Assessed type

Other


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