4b - In `OperationalStaking.sol` there is no penalisation of Network Operators that are dishonest or malicious this can result in misbehaviour of Network Operators #99
In OperationalStaking.sol there is no penalisation of Network Operators that are dishonest or malicious this can result in misbehaviour of Network Operators
Summary
In the docs, the staking section states that whenever a Network Operator is dishonest or has malicious intent, this Network Operator is penalized by slashing a percentage of their staked amount. But in this contract there is no mechanism or logic like that
Vulnerability Detail
This contract does not have any logic that penalizes network operators who are dishonest or have malicious intent without interfering with the operation of the protocol as said in the documentation,
The only function that exists that penalizes network operators is freezeValidator which interferes with the functionality of the protocol, Imagine a number of operators are frozen at the same time this can interfere with the functionality of the protocol or even lead to a DoS.
4b
high
In
OperationalStaking.sol
there is no penalisation of Network Operators that are dishonest or malicious this can result in misbehaviour of Network OperatorsSummary
In the docs, the staking section states that whenever a Network Operator is dishonest or has malicious intent, this Network Operator is penalized by slashing a percentage of their staked amount. But in this contract there is no mechanism or logic like that
Vulnerability Detail
This contract does not have any logic that penalizes network operators who are dishonest or have malicious intent without interfering with the operation of the protocol as said in the documentation,
The only function that exists that penalizes network operators is
freezeValidator
which interferes with the functionality of the protocol, Imagine a number of operators are frozen at the same time this can interfere with the functionality of the protocol or even lead to a DoS.Impact
Code Snippet
The
freezeValidator
function: https://github.com/sherlock-audit/2023-11-covalent/blob/main/cqt-staking/contracts/OperationalStaking.sol#L877-L885Tool used
Manual Review
Recommendation
The slashing logic must be implemented into the staking contract or the documentation needs to be updated with current penalizing mechanism.