sherlock-audit / 2024-03-arrakis-judging

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ValantisModulePublic::deposit Lack of slippage controls #97

Closed sherlock-admin2 closed 1 month ago

sherlock-admin2 commented 1 month ago

ValantisModulePublic::deposit Lack of slippage controls

Low/Info issue submitted by cergyk

Summary

The ValantisModulePublic::deposit function lacks slippage controls, which exposes depositors to potential losses due to unfavorable price movements during deposits.

Vulnerability Detail

The ValantisModulePublic::deposit function is used to deposit liquidity into the vault: ValantisHOTModulePublic.sol#L28-L96.

However, it does not include any checks for slippage, which can lead to significant losses if the price changes unfavorably during the deposit process: ValantisHOTModulePublic.sol#L61.

Without slippage controls, there is no mechanism to ensure that the amount of liquidity added to the pool matches the expected value based on the current price.

Impact

The absence of slippage controls can lead to significant losses for users if the price changes unfavorably during the deposit process. This can result in users receiving fewer shares than expected or the protocol accepting deposits at a much lower value, leading to potential financial losses.

Code Snippet

Tool used

Manual Review

Recommendation

Please consider emphasizing in documentation, that all end user deposits should be done through ArrakisPublicVaultRouter in order to avoid unlimited slippage