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code-423n4 / 2024-04-panoptic-findings

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Using slot0 for sqrtPriceX96 in order to calculate amount could lead to price manipulation #547

Closed c4-bot-7 closed 2 months ago

c4-bot-7 commented 2 months ago

Lines of code

https://github.com/code-423n4/2024-04-panoptic/blob/833312ebd600665b577fbd9c03ffa0daf250ed24/contracts/PanopticFactory.sol#L341

Vulnerability details

The creation of a pool requires the creator to mint full-range liquidity into the corresponding Uniswap V3 pool. However, this fullRangeLiquidity is calculated using the slot0 SqrtPriceX96 from the Uniswap pool, which is susceptible to manipulation.

Impact

MEV bots can utilize flash loans to front-run the creation of a pool, thereby increasing the costs for the user. The user may end up paying more token0 and token1 than necessary for creating the pool. Subsequently, these bots may execute trades that profit from the inflated prices after the pool's creation.

Proof of Concept

Tools Used

Manual Review

Recommended Mitigation Steps

Implement the use of TWAP (Time-Weighted Average Price) instead.

Assessed type

MEV

c4-judge commented 2 months ago

Picodes marked the issue as duplicate of #562

c4-judge commented 2 months ago

Picodes marked the issue as unsatisfactory: Invalid

sammy-tm commented 2 months ago

@Picodes Can you please take a look, this is a dup of #537

c4-judge commented 2 months ago

Picodes marked the issue as not a duplicate

c4-judge commented 2 months ago

Picodes marked the issue as duplicate of #537

c4-judge commented 2 months ago

Picodes marked the issue as satisfactory

c4-judge commented 2 months ago

Picodes changed the severity to 2 (Med Risk)