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code-423n4 / 2024-03-saltyio-mitigation-findings

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M-30 MitigationConfirmed #112

Open c4-bot-4 opened 7 months ago

c4-bot-4 commented 7 months ago

Lines of code

Vulnerability details

Lines of code

Vulnerability details

C4 Issue

https://github.com/code-423n4/2024-01-salty-findings/issues/60

Comments

The issue highlighted a vulnerabiity in Salty's price aggregator. It's reliance on the Chainlink BTC/USD price feed, without a direct WBTC/USD counterpart, posed a vulnerability in events where WBTC depegs from BTC, as historically observed during market volatilities like the LUNA crash. The protocol's price aggregator, which selects the closest two out of three feeds (Uniswap V3 TWAP, Chainlink, and Salty's pool spot price), becomes susceptible to manipulation if WBTC's deviation leads to an inaccurate BTC/USD representation. An attacker, leveraging a flash loan, could skew Salty's pool spot price to match an already deviated Chainlink feed, tricking the aggregator into using the incorrect BTC/USD price for WBTC/USD. This could enable the attacker to unjustly liquidate positions or take undercollateralized positions

Mitigation

https://github.com/othernet-global/salty-io/commit/8e3231d3f444e9851881d642d6dd03021fade5ed

The mitigation for this issue revolved around the deprecation of number of key components including the removal of the overcollateralized USDS stablecoin framework, adding collateral, liquidations etc. Price feeds and the price aggregator as a result were also deprecated.

Conclusion

LGTM

c4-judge commented 6 months ago

Picodes marked the issue as satisfactory