Frax Ether Liquid Staking contest - pedroais's results

A liquid ETH staking derivative designed to uniquely leverage the Frax Finance ecosystem.

General Information

Platform: Code4rena

Start Date: 22/09/2022

Pot Size: $30,000 USDC

Total HM: 12

Participants: 133

Period: 3 days

Judge: 0xean

Total Solo HM: 2

Id: 165

League: ETH

Frax Finance

Findings Distribution

Researcher Performance

Rank: 129/133

Findings: 1

Award: $12.49

🌟 Selected for report: 0

🚀 Solo Findings: 0

Awards

12.4859 USDC - $12.49

Labels

bug
duplicate
2 (Med Risk)

External Links

Lines of code

https://github.com/code-423n4/2022-09-frax/blob/55ea6b1ef3857a277e2f47d42029bc0f3d6f9173/src/frxETHMinter.sol#L200

Vulnerability details

Impact

USDT tokens can't be recovered

Proof of Concept

The most used stablecoin (by market cap) USDT doesn't comply with the current ERC20 standard (it's a prior version of the standard) and doesn't return true on success.

From tether official docs : Note: The integration path is the same as any ERC20 compatible token with the following

Exception: Tether’s current USD₮ ERC20 contract is based on a slightly older standard that does not return a boolean value in the transfer function. Developers and Integrators deploying their own custom contracts should take care and use the SafeERC20 library which is designed to handle both the old and new standards. https://tether.to/es/supported-protocols

The require statement will make the execution revert when calling the function with USDT.

https://github.com/code-423n4/2022-09-frax/blob/55ea6b1ef3857a277e2f47d42029bc0f3d6f9173/src/frxETHMinter.sol#L200

The openZeppelin SafeTransfer function should be used instead of requiring a true value from the transfer.

#0 - FortisFortuna

2022-09-25T21:35:21Z

Not really medium risk. Technically you could use safeTransfer, but if someone were to accidentally send something to this contract, it would most likely be either ETH, FRAX, frxETH, or sfrxETH, all of which are transfer compliant.

#1 - joestakey

2022-09-26T16:02:27Z

Duplicate of #18

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