UNSAFE CASTING CAN LEAD TO ERRORNEOUS utility VALUE CALCULATION

Lines of code Vulnerability details Impact The EvolvingProteus.getUtility function is used to calculate the utility value of the pool at the time of the function call. The utilitiy is calculated using a quadratic formula which is shown below: kab - 1u2 + ay + bxu + xy/k = 0 Above quadratic equati...

Missing slippage protection in _swap()

Lines of code Vulnerability details Impact Without slippage, If the price of the tokens changes significantly during the swap, it could result in a large slippage, causing users to lose a significant amount of funds. An attacker can watch the mempool and then using flash bots execute a sandwich...

Mint/Burn amount during LP addition/removal changes with time

Lines of code Vulnerability details Impact When a user adds LP to the pool, they get LP tokens which they can later use to redeem their positions. The issue is that since the utility and the curve parameters change with time, so does the value of the LP tokens. Say a user wants to deposit 1 ETH t...

Validating input parameters with the max value of uint

Lines of code Vulnerability details Impact Validating input values with uint256.max will not revert in any condition as solidity v0.8.0 reverts on overflow and underflow. Detailed description of the impact of this finding. Due to solidity v0.8.0 which reverts on overflow and underflow of integer...

Division before multiplication incurs larger precision loss

Lines of code Vulnerability details Impact There are couple of instance of using result of a division for multiplication while can cause larger precision loss. Proof of Concept In contract EvolvingProteus.sol, value of int128 two at line 709 is calculated by using ABDKMath64x64.divu function. The...

Vulnerability in swapGivenInputAmount Function that could Leads to Unintended Token Draining

Lines of code Vulnerability details Impact The vulnerability discovered in the swapGivenInputAmount function has the potential to cause unintended token draining in the smart contract. Due to an incorrect check for a negative result in the code requireresult 0;, the function may allow swaps to...

Missing _checkAmountWithBalance check in deposit functions

Lines of code Vulnerability details Impact When computing the input or output amount of a swap checkAmountWithBalance is called to ensure that precision errors do not occur and that the pool does not lose any value. However, checkAmountWithBalance is not called in depositGivenInputAmount and...

MIN_PRICE_VALUE is incorrect

Lines of code Vulnerability details Impact The MINPRICEVALUE variable is being calculated based on 10^10 instead of the intended 10^12. As a result, the MINPRICEVALUE will be lower than expected with 2 decimal places precision, potentially allowing pxinit and pxfinal to be set lower than the...

KEY INVARIANT RELATED TO THE FIXED_FEE AMOUNT CAN BE BROKEN

Lines of code Vulnerability details Impact The EvolvingProteus.applyFeeByRounding function is used to charge fees by rounding values in directions that are beneficial to the pool. Within this function there is a if condition which verifies that the calculated final amount is not less than the...

swapGivenInputAmount() will always revert

Lines of code Vulnerability details Impact swapGivenInputAmount... will always revert leading to a Denial of service. Proof of Concept A call to swapGivenInputAmount... will always revert owing to the logic implementation in the function. function swapGivenInputAmount uint256 xBalance, uint256...

Swapping lacks deadline check

Lines of code Vulnerability details Impact There is no deadline when swapping tokens using EvolvingProteus. Swaps that are done through low gas transactions may be stuck in the mempool for a long time, resulting in unfavourable swap. Proof of Concept Evolving prometeus seems like an upgrade to...

swapGivenInputAmount checks the wrong result out

Lines of code Vulnerability details Impact Wrong check amount results in unusable function. Proof of Concept swapGivenInputAmount calcaultes the value of result after calling swap. The check then requires that result 0. However, the comment states that amount cannot be less than 0...

Utility per LP token can decrease in some cases.

Lines of code Vulnerability details Impact Utility per LP token can decrease in some cases. Proof of Concept The documentation in contest repo states that Within a timeslice a single block, no set of transactions swaps, deposits, withdrawals should result in a decrease of the utility per LP token...

Improper handling of cases when total supply = 0

Lines of code Vulnerability details Impact Improper handling of cases when total supply = 0 AMM engine may not be started. Proof of Concept Considering if a vault uses Shell as its AMM engine. At the start, the vault has 0 X and Y balance and someone try to deposit tokens to it, this process will...

_reserveTokenSpecified does not check if price is in allowed range

Lines of code Vulnerability details Impact Price could go out of range Proof of Concept EvolvingProteus defines a price range using 2 constants, MAXM and MINM: int128 constant MAXM = 0x5f5e1000000000000000000; int128 constant MINM = 0x00000000000002af31dc461; These constants are used in...

Max Price Ratio Manipulation

Lines of code Vulnerability details Impact Vulnerable Part in Code: pyinit.divpyinit.subpxinit ABDKMath64x64.divuuintMAXPRICERATIO, 1 here is A scenario where the range of acceptable price ratios is between 1 and 100 for instance, due to a misconfiguration or oversight, the constant MAXPRICERATIO...

Wrong check applied on certain function.

Lines of code Vulnerability details Impact function which applied the require check for amount will always gets revert like swapGivenInputAmount , withdrawGivenOutputAmount , withdrawGivenInputAmount Proof of Concept under function given above a wrong is made which always get revert when the amou...

Lack of balance checks in the depositGivenInputAmount function

Lines of code Vulnerability details Impact Lack of balance checks in the depositGivenInputAmount function can lead to various unpredictable consequences due to the breach of requirement "The pool's ratio of y to x must be within the interval MINM, MAXM". Proof of Concept The depositGivenInputAmou...

withdrawGivenInputAmount() calls _lpTokenSpecified with the wrong value of feeDirection

Lines of code Vulnerability details Impact withdrawGivenInputAmount calls lpTokenSpecified with the wrong value of feeDirection: function withdrawGivenInputAmount uint256 xBalance, uint256 yBalance, uint256 totalSupply, uint256 burnedAmount, SpecifiedToken...

Error of computation break the LpTokens supply, causes users to lose funds and make functions using _getUtilityFinalLp() broken.

Lines of code Vulnerability details Impact withdrawGivenOutputAmount and withdrawGivenInputAmount functions doesn't revert when balance of tokenX/tokenY = 0 and create an offset between reserve tokens and LP total supply. This lead to unwanted behaviors for the next operations on the protocol...