jah - no slippage lead to loss of fund

[sherlock-admin]

jah

high

no slippage lead to loss of fund

Summary

there is no slippage check when swapping the sale token into holdtoken which can lead to loss of fund

Vulnerability Detail which

in liquidityBorrowigManager line 742 - 761 will try to swap sale token into the holdtoken when swapping the slippage arguments are zero which means there is no check for slippage which will open a door for mev and and mev searcher can do a sandwich attack every time the borrow function first the searcher will listen to a memepool for the borrow function to be called then it will frontrun the trx and buy big amount of hold token due to that the price will go up then when the borrow function swap the sell token into the hold token he will reveice small amount of holdtoken and will pump more the holdtoken then the mev searcher will sell the holdtoken again which he will gain a profit

Impact

loss of fund

Code Snippet

https://github.com/sherlock-audit/2023-10-real-wagmi/blob/main/wagmi-leverage/contracts/LiquidityBorrowingManager.sol#L882

Tool used

Manual Review

Recommendation

add a slippage

[sherlock-admin2]

1 comment(s) were left on this issue during the judging contest.

tsvetanovv commented:

There is a slippage at the end of the function