Lack of Input Validation in Token Transfer Function

[c4-bot-2]

Lines of code

https://github.com/code-423n4/2024-04-panoptic/blob/833312ebd600665b577fbd9c03ffa0daf250ed24/contracts/CollateralTracker.sol#L323

Vulnerability details

Impact

The transfer function in the ERC20 token contract lacks input validation for the recipient address and transfer amount. This absence of validation opens up potential vulnerabilities, allowing for the transfer of tokens to the zero address and the execution of zero-amount transfers. These issues can lead to loss of tokens, unexpected behavior, and security risks.

• Tokens Lost to Zero Address: If a user mistakenly sends tokens to the zero address (address(0)), those tokens will effectively be burned and become irrecoverable.

• Zero-Amount Transfers: Allowing zero-amount transfers means users can execute transactions with no effect on token balances. This could be exploited for spamming transactions or circumventing certain checks.

Tools Used

Manual Review

Recommended Mitigation Steps

• Consider implementing input validation in the transfer function to ensure that the recipient address is not the zero address and the transfer amount is greater than zero. This will prevent potential vulnerabilities and ensure the safety and integrity of the token contract.

Assessed type

Invalid Validation

[c4-judge]

Picodes marked the issue as unsatisfactory: Invalid