newt - Reentrancy Vulnerability

[sherlock-admin4]

newt

High

Reentrancy Vulnerability

Summary

The transfer function in TranferUtils.sol contains a potential reentrancy vulnerability. Despite using a gas limit, the function makes an external call to transfer ERC-20 tokens without reentrancy protection. This could allow malicious contracts to exploit the reentrancy vulnerability.

Vulnerability Detail

If the recipient of the tokens is a contract with a fallback or receive function, this external call could trigger reentrancy, allowing the contract to call back into the transfer function before the initial execution completes.

Impact

If exploited, a reentrancy attack could allow an attacker to repeatedly call the transfer function before the previous execution completes.

Code Snippet

function transfer(address token, address receiver, uint256 amount) external {
    if (amount == 0) {
        return;
    }
    bool success = transferWithGasLimit(IERC20(token), receiver, amount, TRANSFER_GAS_LIMIT);
    if (!success) {
        revert TokenTransferError(token, receiver, amount);
    }
}

https://github.com/sherlock-audit/2024-05-elfi-protocol/blob/main/elfi-perp-contracts/contracts/utils/TransferUtils.sol#L11-L19

Tool used

Manual Review

Recommendation

Add reentrancy guard.

[sherlock-admin2]

The protocol team fixed this issue in the following PRs/commits: https://github.com/0xCedar/elfi-perp-contracts/pull/64

[nevillehuang]

Invalid, lack required poc for reentrancy per sherlock rules

[sherlock-admin2]

The Lead Senior Watson signed off on the fix.