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code-423n4 / 2023-08-reserve-mitigation-findings

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Attacker might disable trading by faking a report violation #40

Open code423n4 opened 1 year ago

code423n4 commented 1 year ago

Lines of code

https://github.com/reserve-protocol/protocol/blob/99d9db72e04db29f8e80e50a78b16a0b475d79f3/contracts/plugins/trading/DutchTrade.sol#L212-L214

Vulnerability details

Dutch trade now creates a report violation whenever the price is x1.5 then the best price. The issue is that the attacker can fake a report violation by buying with the higher price. Since revenue traders don't have a minimum trade amount that can cost the attacker near zero funds.

Mitigation might be to create violation report only if the price is high and the total value of the sell is above some threshold.

Assessed type

Other

c4-sponsor commented 1 year ago

tbrent marked the issue as sponsor confirmed

c4-judge commented 1 year ago

0xean marked the issue as satisfactory

liveactionllama commented 1 year ago

Per discussion with the judge @0xean, this is a new/unique finding. Adding the selected for report label for awarding and reporting purposes.

pmckelvy1 commented 10 months ago

fixed: only rebalancing trades can disable dutch trades in this manner https://github.com/reserve-protocol/protocol/blob/master/contracts/p1/Broker.sol#L142