sherlock-admin4 commented 1 month ago

infect3d

medium

`Claimers` can receive less `feePerClaim` than they should if some prizes are already claimed or if reverts because of a reverting hook

Summary

If a claimer propose an array of prizes to claim, but some of these prizes have already been claimed, or some claims revert, then the actual feePerClaim received will be less compared to what it should really be, as expected by the VRGDA algorithm

This happens because _computeFeePerClaim can undervaluate the value of feePerClaim, as it compute failed claims as successful ones.

This poses an issue, as feePerClaim is then used as an input by _vault.claimPrize(_winners[w], _tier, _prizeIndices[w][p], _feePerClaim, _feeRecipient), which will transfer the undervaluated fee to the claimer.

Vulnerability Detail

Auctions for claiming prizes are based on the VRGDA algorithm In simple terms, this algorithm update price depending on either the numbers of claim is behind or ahead of time schedule. In order to have a schedule, a target of claim per time unit is defined. Just to give an idea, let's simplify that to the extreme (we will see complete formula afterward) and say : price(t) = claim/expected * targetPrice(t) E.g: if 10 claims per 2 hours are exepected, then at t=1h, 5 claims should be concluded. If only 4 were claimed, then we can calculate that (4 claims)/(5 expected) < 1, price will be lower that target. if 6 were claimed, then we will have (6 claims)/(5 expected) > 1, price will be greater than target.

The formula that has been implemented into LinearVRGDALib is the following:

price = p0 * e^ (k * (t - n+1/r))   ; with k = ln(maxFee/minFee) * t_target

With:

n the number of claim already completed
r the expected rate per hour
k the decay constant (speed at which price will change)
p0 the target price (or fee in our case)

The more k *(t - n+1/r) > 0, the more price > p0 When t = n+1/r <=> (k * (t - n+1/r)) = 0, then price = p0 The more k * (t - n+1/r) < 0, the more price < p0

We understand that the more whe are behind schedule in term of expected claim, the higher the fees earned by claimer will be. And the more we are ahead of schedule, the lower the fee for claimers will be (as their is no urgency)

Scenario

Now let's see what happens in this scenario:

For now, 0 prizes have already been claimed from the prize pool, n = 0
Alice has 5 prizes to claim, she build her claim array
It seems that 2 of the prizes Alice was going to claim are claimed right before, now n = 2
Alice tx is executed with the 5 prizes

Now let's see what happen from a code perspective. The code above is the entry point for claiming prizes. As we can see L113, the feePerClaim is computed based on the number of claims to count (_countClaims) and the number of already claimed prizes (prizePool::claimCount()) Then, the computed feePerClaim value is given to _claim which actually claim the prizes into the Prize Pool.

https://github.com/sherlock-audit/2024-05-pooltogether//blob/main/pt-v5-claimer/src/Claimer.sol#L113

File: pt-v5-claimer/src/Claimer.sol

090:   function claimPrizes(
091:     IClaimable _vault,
092:     uint8 _tier,
093:     address[] calldata _winners,
094:     uint32[][] calldata _prizeIndices,
095:     address _feeRecipient,
096:     uint256 _minFeePerClaim
097:   ) external returns (uint256 totalFees) {
...:
...:          /* some code */
...:
112:     if (!feeRecipientZeroAddress) {
113:       feePerClaim = SafeCast.toUint96(_computeFeePerClaim(_tier, _countClaims(_winners, _prizeIndices), prizePool.claimCount()));
114:       if (feePerClaim < _minFeePerClaim) {
115:         revert VrgdaClaimFeeBelowMin(_minFeePerClaim, feePerClaim);
116:       }
117:     }
118:
119:     return feePerClaim * _claim(_vault, _tier, _winners, _prizeIndices, _feeRecipient, feePerClaim); 
120:   }

Now, let's see how _computeFeePerClaim actually compute feePerClaim. We see above L230-241 that a fee is calculated for each of the claims of the array, starting at _claimedCount (The number of prizes already claimed) based on the VRGDA formula L309. The returned value (which is stored into feePerClaim) is the averaged fee as shown L241. And as we explained earlier, the higher the number of claim we make, the lower the earned fee are. So, a higher value of _claimedCount + i will give lower fees.

https://github.com/sherlock-audit/2024-05-pooltogether//blob/main/pt-v5-claimer/src/Claimer.sol#L236

File: pt-v5-claimer/src/Claimer.sol
205:   /// @param _claimCount The number of claims to check
206:   /// @param _claimedCount The number of prizes already claimed
207:   /// @return The total fees for the claims
208:   function _computeFeePerClaim(
209:     uint8 _tier,
210:     uint256 _claimCount,
211:     uint256 _claimedCount
212:   ) internal view returns (uint256) {
...:
...:        /* some code */
...:
227:     uint256 elapsed = block.timestamp - (prizePool.lastAwardedDrawAwardedAt());
228:     uint256 fee;
229: 
230:     for (uint256 i = 0; i < _claimCount; i++) {
231:       fee += _computeFeeForNextClaim(
232:         targetFee,
233:         decayConstant,
234:         perTimeUnit,
235:         elapsed,
236:         _claimedCount + i,         
237:         _maxFee
238:       );
239:     }
240: 
241:     return fee / _claimCount;
242:   }
...:
...:        /* some code */
...:
301:   function _computeFeeForNextClaim(
302:     uint256 _targetFee,
303:     SD59x18 _decayConstant,
304:     SD59x18 _perTimeUnit,
305:     uint256 _elapsed,
306:     uint256 _sold,
307:     uint256 _maxFee
308:   ) internal pure returns (uint256) {
309:     uint256 fee = LinearVRGDALib.getVRGDAPrice(
310:       _targetFee,
311:       _elapsed,
312:       _sold,
313:       _perTimeUnit,
314:       _decayConstant
315:     );
316:     return fee > _maxFee ? _maxFee : fee;
317:   }
318:

What we can see from this, is that the computation will be executed for _claimCount = 2 and up to i = 5, so as if there has been 7 claimed prizes, while in reality only 5 prizes are claimed, leading in an undervaluation of the fees to award. As you probably have infered, the computation should have been made for i = 3 to be correct.

Impact

The feePerClaim computation is incorrect as the VRGDA is calculated for more claims that will really happen, leading to less fee earned by claimers at the time of the call.

Code Snippet

https://github.com/sherlock-audit/2024-05-pooltogether//blob/main/pt-v5-claimer/src/Claimer.sol#L113 https://github.com/sherlock-audit/2024-05-pooltogether//blob/main/pt-v5-claimer/src/Claimer.sol#L236

Tool used

Manual Review

Recommendation

The PrizePool contract expose a function to check if a prize has already been claimed: wasClaimed This can be used to countClaims based on the actual true number of claimable prizes from the array.

This isn't a "perfect" solution though, as there are still issues when not already claimed prizes revert because of reverting prize hooks. In that case, VRGDA will still count the claim as happening, but we can consider this less likely to happen.

  function _countClaims(
    address[] calldata _winners,
    uint32[][] calldata _prizeIndices
  ) internal pure returns (uint256) {
    uint256 claimCount;
    uint256 length = _winners.length;
    for (uint256 i = 0; i < length; i++) {
-     claimCount += _prizeIndices[i].length;
+     numPrize = _prizeIndices[i].length;
+     for(uint256 j = 0; j < numPrize; j++) {
+       bool wasClaimed = wasClaimed(_vault, _winner, _drawId,_tier, _prizeIndex);
+       if(!wasClaimed) {
+        claimCount += 1;
+       }
+     }
    }
    return claimCount;
  }

trmid commented 1 month ago

The prize pool must be passed the fee during each individual claim call so it can give the claimer their reward. The fees are calculated before in bulk and then split evenly for each claim in the batch. As the issue demonstrates, it is possible for some of these claims to revert, resulting in less fees collected than if the claimer excluded the reverting claims.

It's important for the claimers to simulate the results before claiming to ensure their claims will result in the expected rewards. Claimers compete to perform claims at the lowest costs, so the bots that simulate results will have higher success rates and be able to claim at lower margins compared to those who don't.

The impact of this issue is very low for competitive bots since claim simulations are commonly available and encouraged.

InfectedIsm commented 3 weeks ago

Hey @nevillehuang, just noticed #57 is incorrectly duplicated with this finding. The submission do not show the fee calculation error, it simply tell that a user could claim the canary tier before prizes are claimed, which will increase the PrizePool.claimedCount counter, which is expected behavior. There is no reference about already claimed prizes which are still counted as claimed by the VRGDA. Sorry for not having noticed it before.

InfectedIsm commented 2 weeks ago

@WangSecurity can you check this please, it has been overlooked, thanks (I've shared 6 days ago that #57 is not a duplicate of this finding)

sherlock-audit / 2024-05-pooltogether-judging

infect3d - `Claimers` can receive less `feePerClaim` than they should if some prizes are already claimed or if reverts because of a reverting hook #124

`Claimers` can receive less `feePerClaim` than they should if some prizes are already claimed or if reverts because of a reverting hook

Summary

Vulnerability Detail

Scenario

Impact

Code Snippet

Tool used

Recommendation

sherlock-audit / 2024-05-pooltogether-judging

infect3d - `Claimers` can receive less `feePerClaim` than they should if some prizes are already claimed or if reverts because of a reverting hook #124

Claimers can receive less feePerClaim than they should if some prizes are already claimed or if reverts because of a reverting hook

Summary

Vulnerability Detail

Scenario

Impact

Code Snippet

Tool used

Recommendation

`Claimers` can receive less `feePerClaim` than they should if some prizes are already claimed or if reverts because of a reverting hook