Redemptions during undercollateralization can be hot-swapped to steal all funds

Lines of code Vulnerability details Impact During recollateralization/a switch basket/when the protocol collateral isn't sound, a user can have almost their entire redemption transaction hot swapped for nothing. For example, trying to redeem 1M collateral for 1M rTokens could have the user end up...

RToken issuers are not protected from slippage

Lines of code Vulnerability details Impact Users can get loss from the slippage due to various potential reasons. Proof of Concept Users can issue new RTokens by depositing the necessary collaterals using the function issue. The function issue has two parameters specifying the recipient and...

Adversary can abuse a quirk of compound redemption to manipulate the underlying exchange rate and maliciously disable cToken collaterals

Lines of code Vulnerability details Impact Adversary can maliciously disable cToken collateral to cause loss to rToken during restructuring Proof of Concept if referencePrice 0: / if redeemTokensIn 0 / We calculate the exchange rate and the amount of underlying to be redeemed: redeemTokens =...

Fee on transfer based collateral is not considered.

Lines of code Vulnerability details Impact It has following impacts. 1. backingManager would be transferred with lesser than deposits 2. Recorded liabilities will be more 3. collateral deposited into the RToken contract would be lesser than deposits Proof of Concept Any one can mint RToken by...

stRSR.seizeRSR() should check whether the basket of collateral is defaulted

Lines of code Vulnerability details Impact Backing Manager can seize RSR anytime and not within reason. RSR stakers will lose their funds. Proof of Concept Protocol states that staked RSR can be seized in the case of a collateral default, in a process that is entirely mechanistic based on on-chai...

Possible Unauthorized Redemption of Collateral ERC20 Tokens due to Lack of Proper Check in redeem() Function

Lines of code Vulnerability details Impact An attacker who is not authorized by the smart contract could potentially redeem more tokens than they are entitled to. This could cause a loss of funds for the smart contract and its users, as well as potentially destabilizing the overall ecosystem...

RecollateralizationLib: Flaw in basket range calculation leads to early basket compromise and loss to RToken holders

Lines of code Vulnerability details Impact This report deals with how the recollateralization algorithm underestimates the number of baskets it can hold by calculating unnecessary costs for collateral that does not need to be traded. When this number of baskets it thinks it can hold is reached -...

Basket range formula is inefficient, leading the protocol to unnecessary haircut

Lines of code Vulnerability details Impact The BackingManager.manageTokens function checks if there's any deficit in collateral, in case there is, if there's a surplus from another collateral token it trades it to cover the deficit, otherwise it goes for a 'haircut' and cuts the amount of basket...

LienToken: Lender and liquidator can collude to block auction and seize collateral

Lines of code Vulnerability details If a lender offers a loan denominated in an ERC20 token that blocks transfers to certain addresses for example, the USDT and USDC blocklist, they may collude with a liquidator or act as the liquidator themselves to prevent loan payments, block all bids in the...

Transfer of assets should come before deleting and burning the collateral id

Lines of code Vulnerability details Impact Detailed description of the impact of this finding. Clldata id is burnt and deleted before transfer Proof of Concept Provide direct links to all referenced code in GitHub. Add screenshots, logs, or any other relevant proof that illustrates the concept...

Future Epoch Pending Redemption Balance Set Vulnerability

Lines of code Vulnerability details Impact The setPendingRedemptionBalance function allows an admin to set the balance of a user's pending redemption for a specific epoch. However, it does not properly check that the epoch being set is in the past and not in the future. An attacker could...

Redeemers can reject receiving air-drop collateral token, make function completeRedemptions() failing and wasting gas of admin

Lines of code Vulnerability details Impact Function completeRedemptions is used by admin account to distribute collateral to users and also to refund redemption requests if the redemption cannot be serviced. Redeemers will received funds from assetSender in air-drop manner, if collateral token is...

Redeemers will receive less collateral than expected if function completeRedemptions() is called with empty refundees list

Lines of code Vulnerability details Impact Function completeRedemptions is used by admin account to distribute collateral to users and also to refund redemption requests if the redemption cannot be serviced. function completeRedemptions address calldata redeemers, address calldata refundees,...

Values in redemptions do not match, and fees are being overcharged

Lines of code Vulnerability details Impact The amount of collateral to distribute collateralAmountToDist does not need to match the sum of fees actually distributed the sum of collateralAmountDue in the events of processRedemption. The real distributed amount can be smaller. However, the fees are...

Admin account can lose user's collateral

Lines of code Vulnerability details Impact This is high risk because funds can be send to the wrong address. Proof of Concept Tools Used VSCode, Slither Recommended Mitigation Steps Recommend considering the use of msg.sender in completeRedemptions and processRedemption --- The text was updated...

Incorrect Authorization in setPendingRedemptionBalance function can lead receiving more collateral

Lines of code Vulnerability details Impact An attacker to exploit the setPendingRedemptionBalance function if they are able to gain the MANAGERADMIN role. In the provided code, the function allows the MANAGERADMIN to set the pending redemption balance of a user for a specific epoch. If an attacke...

Rounding error "confiscastes" some collateral

Lines of code Vulnerability details Impact There are no adjustments for collateral that is not returned on redemptions due to rounding errors. It will stay in the assetSender however, it will look as if was fully paid out. The rounding error also depends on the burned quantity, so it may be...

Wrong logic totalBurned is not updated after _processRefund() results in loss of funds for redeemers

Lines of code Vulnerability details Impact Function completeRedemptions is used by admin account to distribute collateral to users and also to refund redemption requests if the redemption cannot be serviced. function completeRedemptions address calldata redeemers, address calldata refundees,...

Upgraded Q -> M from #216 [1673172689834]

Judge has assessed an item in Issue 216 as M risk. The relevant finding follows: Last collateral check is not safe --- The text was updated successfully, but these errors were encountered: All reactions...

NODE OPERATORS CAN WITHDRAW ALL THEIR GGP COLLATERAL BEFORE VALIDATION PERIOD ENDS THEREBY AVOIDING SLASHING.

Lines of code Vulnerability details Impact 1. Node operators can avoid slashing, thus no penalties. 2. Node operators can withdraw their entire GGP collateral before the validation period is over. Proof of Concept The withdrawGGP function in Staking.sol transfers back to node operator excess GGP...