code423n4 commented 3 years ago

Handle

leastwood

Vulnerability details

Impact

An auction bonder has a single day's worth of blocks to call settleAuction() and perform the necessary rebalance. In the event this does not happen, any user is able to call bondBurn() and have the bond burnt in its entirety. As a result, the basketTokens used as a bond deposit are unable to be recovered by any user in the system and lead to wasted resources.

Proof of Concept

https://github.com/code-423n4/2021-09-defiProtocol/blob/main/contracts/contracts/Auction.sol#L111-L124 https://github.com/code-423n4/2021-09-defiProtocol/blob/main/contracts/contracts/Basket.sol#L102-L108

Tools Used

Manual code review

Recommended Mitigation Steps

Ideally distribute the burnt bond to all protocol users. Alternatively, a more simple approach would be to enable the publisher to extract any excess tokens. This could be done by transferring the tokens from the auction bonder to the publisher upon executing bondBurn(), enabling them to later withdraw the correct share of the basket.

frank-beard commented 3 years ago

this is intentional

GalloDaSballo commented 2 years ago

The burn is part of the protocol, the burn is burning the shares of the basket, which means no external funds are lost. As per what the Sponsor says, this is intentional.

Personally am not fully sure who would put their own funds at risk (am assuming this is to motivate action similarly to Olympus Pro)

code-423n4 / 2021-09-defiprotocol-findings