Venus Protocol Isolated Pools - Parad0x's results

Earn, Borrow & Lend on the #1 Decentralized Money Market on the BNB Chain

General Information

Platform: Code4rena

Start Date: 08/05/2023

Pot Size: $90,500 USDC

Total HM: 17

Participants: 102

Period: 7 days

Judge: 0xean

Total Solo HM: 4

Id: 236

League: ETH

Venus Protocol

Findings Distribution

Researcher Performance

Rank: 84/102

Findings: 1

Award: $51.68

🌟 Selected for report: 0

🚀 Solo Findings: 0

Findings Information

🌟 Selected for report: LokiThe5th

Also found by: 0x8chars, Co0nan, Cryptor, J4de, Josiah, Norah, Parad0x, QiuhaoLi, RaymondFam, bin2chen, fs0c, qpzm, thekmj, volodya, xuwinnie

Awards

51.6843 USDC - $51.68

Labels

bug
2 (Med Risk)
downgraded by judge
satisfactory
duplicate-220

External Links

Lines of code

https://github.com/code-423n4/2023-05-venus/blob/8be784ed9752b80e6f1b8b781e2e6251748d0d7e/contracts/VToken.sol#L743-L791

Vulnerability details

Impact

The token could be impacted by an inflation attack.

Proof of Concept

At present, vToken is still susceptible to the well-known ERC4626 'Inflation Attack'. This vulnerability allows the total asset count to be inflated by making donations.

This means that one can mint initially, redeem thereafter, be left with 1 share, and then by directly transferring assets, enhance the exchangeRate, thereby enabling an 'Inflation Attack'.

It's important to note that while the initial mint can be triggered at the creation of a VToken, there isn't any constraint demanding that the initialSupply should be equal to zero.

Tools Used

Manual Review.

It is advised to consider the latest version of OpenZeppelin, which introduces a unique iteration of ERC4626 aimed at mitigating this 'Inflation Attack'.

Ref: https://docs.openzeppelin.com/contracts/4.x/erc4626

Assessed type

Other

#0 - c4-judge

2023-05-17T12:00:11Z

0xean marked the issue as duplicate of #314

#1 - c4-judge

2023-06-05T13:59:26Z

0xean marked the issue as satisfactory

#2 - c4-judge

2023-06-05T14:37:35Z

0xean changed the severity to 3 (High Risk)

#3 - c4-judge

2023-06-05T14:37:43Z

0xean changed the severity to 2 (Med Risk)

AuditHub

A portfolio for auditors, a security profile for protocols, a hub for web3 security.

Built bymalatrax © 2024

Auditors

Browse

Contests

Browse

Get in touch

ContactTwitter