Protocol highly depends on correct block.timestamp values which is not the case in Arbitrum
Summary
It is said in the contest README that the protocol can be deployed on any EVM compatible chain. Arbitrum is one of them.
From Arbitrum docs:
Block timestamps on Arbitrum are not linked to the timestamp of the L1 block. They are updated every L2 block based on the sequencer's clock. These timestamps must follow these two rules:
Must be always equal or greater than the previous L2 block timestamp
Must fall within the established boundaries (24 hours earlier than the current time or 1 hour in the future). More on this below.
The current reliance on block.timestamp is incompatible with the protocol's design, as accurate timestamps are crucial for core functionalities. It's uncertain whether the CTF can be deployed on Arbitrum, so this issue might not be applicable. However, if deployment is possible, I think that it should be reported.
Loan start time can be set in past (24 hours back) thus making the real duration of the loan uncertain.
Call time of loan can be set in past and result in no auction.
All functionalities which depend on block.timestamp can be set in the past and lead to unexpected result for users.
Stable Midnight Canary
Medium
Protocol highly depends on correct block.timestamp values which is not the case in Arbitrum
Summary
It is said in the contest README that the protocol can be deployed on any EVM compatible chain. Arbitrum is one of them. From Arbitrum docs:
The current reliance on block.timestamp is incompatible with the protocol's design, as accurate timestamps are crucial for core functionalities. It's uncertain whether the CTF can be deployed on Arbitrum, so this issue might not be applicable. However, if deployment is possible, I think that it should be reported.
Root Cause
Potential deployment on Arbitrum where
block.timestampbehaves different than mainnet and other EVM compatible chains. https://github.com/sherlock-audit/2024-09-predict-fun/blob/41e70f9eed3f00dd29aba4038544150f5b35dccb/predict-dot-loan/contracts/PredictDotLoan.sol#L30Internal pre-conditions
N/A
External pre-conditions
Protocol deployed on Arbitrum.
Attack Path
N/A
Impact
Loan start time can be set in past (24 hours back) thus making the real duration of the loan uncertain. Call time of loan can be set in past and result in no auction. All functionalities which depend on block.timestamp can be set in the past and lead to unexpected result for users.
PoC
No response
Mitigation
No response