Kelp DAO | rsETH - Tumelo_Crypto's results

A collective DAO designed to unlock liquidity, DeFi and higher rewards for restaked assets through liquid restaking.

General Information

Platform: Code4rena

Start Date: 10/11/2023

Pot Size: $28,000 USDC

Total HM: 5

Participants: 185

Period: 5 days

Judge: 0xDjango

Id: 305

League: ETH

Kelp DAO

Findings Distribution

Researcher Performance

Rank: 172/185

Findings: 1

Award: $2.76

QA:
grade-b

🌟 Selected for report: 0

🚀 Solo Findings: 0

Awards

2.7592 USDC - $2.76

Labels

bug
grade-b
QA (Quality Assurance)
sufficient quality report
edited-by-warden
Q-39

External Links

[L-01] DepositLimit can be exceeded due to stETH being a rebase token

Impact

Although low risk as deposit limit is said to be 100 000 Eth, this will cause problems when interacting with Eigenlayer contracts as they share similar deposit limit.

Proof of Concept

stETH is a rebasing token that can increase or decrease as the balance of Eth in certain pools changes to maintain 1:1 peg. Should total deposits reach limit specified at any time and stETH supply increases, the protocol will be over the deposit Limit and could encounter problems interacting with the Eignelayer contracts as they are said to have a similar limit.

        if (depositAmount > getAssetCurrentLimit(asset)) {
            revert MaximumDepositLimitReached();
        }

Likelihood of this happening is low as protocol would have to reach or come really close to deposit limit of 100K ETH first.

Tools Used

Manuel review

Protocol should include separate checks to see if changes in stETH have pushed past depositLimit before depositing into NodeDelegator or EigenLayer strategies. If limit has been passed then protocol should remove some stETH from contract to remain under or equal to depositLimit.

#0 - raymondfam

2023-11-18T00:08:44Z

Possible upgrade:

[L-01] --> #537

#1 - c4-pre-sort

2023-11-18T00:08:51Z

raymondfam marked the issue as sufficient quality report

#2 - c4-judge

2023-12-01T16:42:15Z

fatherGoose1 marked the issue as grade-c

#3 - c4-judge

2023-12-01T18:56:57Z

fatherGoose1 marked the issue as grade-b

#4 - fatherGoose1

2023-12-01T18:57:12Z

Bumping to grade B due to dupe with #537

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