Althea Liquid Infrastructure - kartik_giri_47538's results

Lines of code

https://github.com/code-423n4/2024-02-althea-liquid-infrastructure/blob/bd6ee47162368e1999a0a5b8b17b701347cf9a7d/liquid-infrastructure/contracts/LiquidInfrastructureERC20.sol#L441

Vulnerability details

Overwriting distributableERC20s array during distribution.

Description: The contract allows the owner to overwrite the list of ERC20s (distributableERC20s) that may be distributed to token holders while a distribution to holders is occurring. This flexibility can lead to unintended consequences as the _beginDistribution function calculates erc20EntitlementPerUnit based on distributableERC20s, potentially resulting in distributions of incorrect tokens.

Impact: Changing distributableERC20s during a distribution can cause the contract to distribute tokens to holders that were not intended. This behavior may result in unexpected outcomes, misaligned incentives, and possible loss of funds for token holders. Inconsistent or inaccurate distribution events could lead to confusion and undermine trust in the protocol.

Proof of Concept: The _beginDistribution function calculates erc20EntitlementPerUnit based on the distributableERC20s. If the Owner changes distributableERC20s while a distribution is in progress. The distribute function will emit incorrect token lists and amounts, leading to unexpected token distributions to holders.

Recommended Mitigation: To mitigate this issue, consider implementing a mechanism to prevent the owner from changing distributableERC20s while a distribution is in progress. This can be achieved by adding a check in functions setDistributableERC20s that modify distributableERC20s to ensure that LockedForDistribution is false before allowing any changes.

Below code shows the recommended mitigation.

 function setDistributableERC20s(address[] memory _distributableERC20s) public onlyOwner {
+       require(!LockedForDistribution, "distribution in progress");
        distributableERC20s = _distributableERC20s;
    }

Assessed type

Other