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code-423n4 / 2022-08-olympus-findings

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Single-step process for admin/executor transfer is risky #487

Closed code423n4 closed 1 year ago

code423n4 commented 2 years ago

Lines of code

https://github.com/code-423n4/2022-08-olympus/blob/549b96bcf8b97807738572605f6b1e26b33ef411/src/Kernel.sol#L252-L253 https://github.com/code-423n4/2022-08-olympus/blob/549b96bcf8b97807738572605f6b1e26b33ef411/src/Kernel.sol#L250-L251

Vulnerability details

Single-step process for admin/executor transfer is risky

Impact

The following contracts and functions, allow owners to interact with administration functions such as:

These critical address transfer in one-step is very risky because it is irrecoverable from any mistakes

Scenario: If an incorrect address, e.g. for which the private key is not known, is used accidentally then it prevents the use of all the onlyAdmin() or onlyExecutor() functions forever, which includes the changing of various critical addresses and parameters. This use of incorrect address may not even be immediately apparent given that these functions are probably not used immediately.

When noticed, due to a failing onlyAdmin() or onlyExecutor() function call, it will force the redeployment of these contracts and require appropriate changes and notifications for switching from the old to new address. This will diminish trust in the protocol and incur a significant reputational damage.

Github Permalinks

https://github.com/code-423n4/2022-08-olympus/blob/549b96bcf8b97807738572605f6b1e26b33ef411/src/Kernel.sol#L252-L253 https://github.com/code-423n4/2022-08-olympus/blob/549b96bcf8b97807738572605f6b1e26b33ef411/src/Kernel.sol#L250-L251

Proof of Concept

See similar High Risk severity finding from Trail-of-Bits Audit of Hermez. https://github.com/trailofbits/publications/blob/master/reviews/hermez.pdf See similar Medium Risk severity finding from Trail-of-Bits Audit of Uniswap V3: https://github.com/Uniswap/v3-core/blob/main/audits/tob/audit.pdf

Recommended steps

Recommend overriding the inherited methods to null functions and use separate functions for a two-step address change:

  1. Approve a new address as a pendingAdmin/pendingExecutor
  2. A transaction from the pendingAdmin/pendingExecutor address claims the pending ownership change.

This mitigates risk because if an incorrect address is used in step (1) then it can be fixed by re-approving the correct address. Only after a correct address is used in step (1) can step (2) happen and complete the address/ownership change.

Also, consider adding a time-delay for such sensitive actions.

ind-igo commented 2 years ago

dupe #153

0xean commented 1 year ago

QA. Dupe of #472 - wardens QA report