code423n4 commented 1 year ago

Lines of code

https://github.com/code-423n4/2023-01-ondo/blob/f3426e5b6b4561e09460b2e6471eb694efdd6c70/contracts/cash/CashManager.sol#L410-L419

Vulnerability details

Impact

The mintFee can be set to 100%. An amount of centralization over the usual is to be expected in a protocol that deals with RWAs and requires KYC but being able to set the fee to 100% is unnecessary, dangerous, and could harm Ondo's reputation.

Proof of Concept

Users often approve an unlimited amount of funds to contracts they interact with, it would therefore be reasonable to assume than many would lose the amount decided by the mintFee variable.

The risk lies both in the reputational damage to Ondo when users realize that a fee can be set to 100%. Users in the DeFi space have a high standard when it comes to trustlessness and will no look favorably on unnecessary centralization that can harm users.

There is an additional risk where the manager sets the fee to a very high number by mistake since there are no checks, this would also harm Ondo's reputation.

Tools Used

Manual Review

Recommended Mitigation Steps

Set a reasonable upper limit.

c4-judge commented 1 year ago

trust1995 marked the issue as unsatisfactory: Invalid

c4-sponsor commented 1 year ago

tom2o17 marked the issue as sponsor disputed

code-423n4 / 2023-01-ondo-findings