code-423n4 / 2023-09-delegate-findings

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Non-standart ERC20 tokens are not supported #332

Closed c4-submissions closed 11 months ago

c4-submissions commented 11 months ago

Lines of code

https://github.com/code-423n4/2023-09-delegate/blob/a6dbac8068760ee4fc5bababb57e3fe79e5eeb2e/src/DelegateToken.sol#L399

Vulnerability details

Impact

The issue here is that some non-standard ERC20 tokens can have fee-on-transfer

Proof of Concept

The issue here is that some non-standard ERC20 tokens can have fee-on-transfer, so it could cause a problem that the protocol will lose tokens on each call.

Since the number of deposit tokens and withdraw tokens are written in some variables, without taking into account the fee-on-transfer. So, the user will receive the number of tokens after withdrawing less by a one-time payment of fee-on-transfer, because the second fee-on-transfer was paid by the protocol.

So, in some period of time, the protocol balance of some non-standard tokens can be drained by multiple call of transfer function

The same issue can be found all over the contract, on each interaction with ERC20 tokens.

Tools Used

Manual review

Recommended Mitigation Steps

Change the user's deposited tokens based on each withdraw with taking fee-on-transfer to an account.

Assessed type

Token-Transfer

GalloDaSballo commented 11 months ago

OOS from Bot

c4-judge commented 11 months ago

GalloDaSballo marked the issue as unsatisfactory: Out of scope