0xBhumii - Immutable `Management` Address in `TrancheFactory` Contract

[sherlock-admin2]

0xBhumii

medium

Immutable Management Address in TrancheFactory Contract

Summary

The TrancheFactory contract exhibits a vulnerability wherein the management address, once set in the constructor, cannot be changed or updated. Consequently, if the management address is compromised, there is no recourse or mechanism to rectify the situation, leading to potential security breaches and loss of control over the contract's deployment functionalities.

Vulnerability Detail

The vulnerability arises due to the immutable nature of the management address, which is set only once during contract deployment. Since there is no provision to update or change the management address after deployment, any compromise or unauthorized access to the management account poses a severe security risk. Without the ability to alter the management address, the contract becomes permanently susceptible to exploitation, unauthorized deployment of Tranche instances, and manipulation of critical contract parameters

Impact

Complete Loss of Control: Compromising the management address results in the irreversible loss of control over the TrancheFactory contract. Attackers can exploit this vulnerability to deploy unauthorized Tranche contracts and manipulate contract functionalities without any means for intervention or recovery. Security Breach: Unauthorized access to the management address could lead to malicious activities, including unauthorized fund transfers, manipulation of contract states, and exploitation of system vulnerabilities. Loss of User Trust: The inability to rectify the compromised management address erodes user trust and confidence in the contract's security and reliability.

Code Snippet

https://github.com/sherlock-audit/2024-01-napier/blob/main/napier-v1/src/TrancheFactory.sol#L28C1-L41C1

address public immutable management;

constructor(address _management) {
    management = _management;
}

Tool used

Manual Review

Recommendation

Given the critical nature of the vulnerability, it is imperative to implement measures to mitigate the risk associated with the immutable management address:

Emergency Contract Upgrade: Develop a mechanism to facilitate emergency contract upgrades, allowing for the replacement or update of critical contract parameters, including the management address, in the event of compromise. Implement Time-Locked Governance: Introduce a time-locked governance mechanism that requires multi-signature authorization or community consensus to change the management address, thereby enhancing security and decentralization.

[sherlock-admin]

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

takarez commented:

invalid