code423n4 commented 12 months ago

Lines of code

https://github.com/code-423n4/2023-07-moonwell/blob/main/src/core/Governance/TemporalGovernor.sol#L346-L350

Vulnerability details

Impact

Wormhole governance can change signing guardian sets. If this happens between a proposal is queued and a proposal is executed. The second verification in _executeProposal will fail as the guardian set has changed between queuing and executing.

This would cause a proposal to fail to execute after the proposalDelay has passed. Causing a lengthy re-sending of the message from Timelock on source chain, then proposalDelay again.

Proof of Concept

To execute a proposal on TemporalGovernor it first needs to be queued. When queued it is checked that the message is valid against the Wormhole bridge contract:

https://github.com/code-423n4/2023-07-moonwell/blob/main/src/core/Governance/TemporalGovernor.sol#L295-L306

File: Governance/TemporalGovernor.sol

295:    function _queueProposal(bytes memory VAA) private {
296:        /// Checks
297:
298:        // This call accepts single VAAs and headless VAAs
299:        (
300:            IWormhole.VM memory vm,
301:            bool valid,
302:            string memory reason
303:        ) = wormholeBridge.parseAndVerifyVM(VAA);
304:
305:        // Ensure VAA parsing verification succeeded.
306:        require(valid, reason);

After some more checks are done the message is queued by its wormhole hash.

Then, after proposalDelay, anyone can call executeProposal

Before the proposal is executed though, a second check against the Wormhole bridge contract is done:

https://github.com/code-423n4/2023-07-moonwell/blob/main/src/core/Governance/TemporalGovernor.sol#L344-L350

File: Governance/TemporalGovernor.sol

344:    function _executeProposal(bytes memory VAA, bool overrideDelay) private {
345:        // This call accepts single VAAs and headless VAAs
346:        (
347:            IWormhole.VM memory vm,
348:            bool valid,
349:            string memory reason
350:        ) = wormholeBridge.parseAndVerifyVM(VAA);

The issue is that the second time the verification might fail.

During the wormhole contract check for validity there is a check that the correct guardian set has signed the message:

https://github.com/wormhole-foundation/wormhole/blob/f11299b888892d5b4abaa624737d0e5117d1bbb2/ethereum/contracts/Messages.sol#L79-L82

79:        /// @dev Checks if VM guardian set index matches the current index (unless the current set is expired).
80:        if(vm.guardianSetIndex != getCurrentGuardianSetIndex() && guardianSet.expirationTime < block.timestamp){
81:            return (false, "guardian set has expired");
82:        }

But(!), Wormhole governance can change the signers:

https://github.com/wormhole-foundation/wormhole/blob/f11299b888892d5b4abaa624737d0e5117d1bbb2/ethereum/contracts/Governance.sol#L76-L112

 76:    /**
 77:     * @dev Deploys a new `guardianSet` via Governance VAA/VM
 78:     */
 79:    function submitNewGuardianSet(bytes memory _vm) public {
            // ... parsing and verification

104:        // Trigger a time-based expiry of current guardianSet
105:        expireGuardianSet(getCurrentGuardianSetIndex());
106:
107:        // Add the new guardianSet to guardianSets
108:        storeGuardianSet(upgrade.newGuardianSet, upgrade.newGuardianSetIndex);
109:
110:        // Makes the new guardianSet effective
111:        updateGuardianSetIndex(upgrade.newGuardianSetIndex);
112:    }

Were this to happen between queueProposal and executeProposal the proposal would fail to execute.

Tools Used

Manual audit

Recommended Mitigation Steps

Consider only check the VAAs validity against Wormhole in _executeProposal when it is fasttracked (overrideDelay==true).

However then anyone can just just take the hash from the proposal VAA and submit whatever commands. One idea to prevent this is to instead of storing the VAA vm.hash, use the hash of the complete VAA as key in queuedTransactions. Thus, the content cannot be altered.

Or, the whole VAA can be stored alongside the timestamp and the executeProposal call can be made with just the hash.