Canto Application Specific Dollars and Bonding Curves for 1155s - Pheonix's results

Lines of code

https://github.com/code-423n4/2023-11-canto/blob/335930cd53cf9a137504a57f1215be52c6d67cb3/1155tech-contracts/src/Market.sol#L150-L169

Vulnerability details

Impact

A malicious user can FrontRun the transaction to inflate the price of shares.

Proof of Concept

Consider this Scenario -

1. Alice buys a share for a price X.
2. Bob Observes that transaction and FrontRuns Alice with a higher price.
3. Alice got a higher price of share.
4. If Alice buys regardless, then Bob will sell and profits. If not, then Bob was able to control Alice for not buy at the end.

Tools Used

Manual Review

Recommended Mitigation Steps

Introducing a maxPrice parameter (like Uniswap) would help. Letting the user specify a maximum price (that they are willing to pay) and then checking if the actual price is higher.

Assessed type

Other

Lines of code

https://github.com/code-423n4/2023-11-canto/blob/335930cd53cf9a137504a57f1215be52c6d67cb3/1155tech-contracts/src/Market.sol#L150-L169

Vulnerability details

Impact

There is no limit to how much shares a user can buy.

Proof of Concept

Consider a Scenario where a new share of art ( a rare one ) is opened by some creator.

1. The first buyer can corner the competition by buying too many shares from the start
2. He/she can also dictate the price of shares. This can lead inflation of the shares.

Considering the fact the with each subsequent share, the price will increase with respect to bonding curve and the buyer has to give a huge sums of fees. But in a case where buying shares which are rare(let's say an exclusive art/video etc.) can can get a price increase in future it is possible that this buyer can later dump the shares and get a huge profit. Also, it is not a state of healthy competition for shares

Tools Used

Manual Review

Recommended Mitigation Steps

It is recommended that the creator or the platform should be able to specify how much shares can be bought.

Assessed type

Other