20,000 USDC
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Submission Details
Severity: medium
Valid

sellProfits funciton may not be usable due to UniswapV3 pools configuration

Summary

Fees contract allow swapping fees generated by the protocol in form of collateral tokens to be swapped to WETH and transfered to Staking contract.

Vulnerability Details

Current sellProfits function calls Uniswap V3 ExactInputSingleParams function with hard-coded fee 3000, which will effectively use Uniswap pool with 0.3% fee.
While 0.3% fee pool are most common for Uniswap, pools might be also created with 0.05% or 1% fees.
It's crucial to use the correct fee value that corresponds to the actual fee tier used in the liquidity pool to get accurate results when using Uniswap's ExactInputSingle function. Incorrect usage can lead to financial losses or undesired outcomes.

Impact

Effectively, if we use current implementation of sellProfits for the token pair were non 0.3% implemented we may get worse price or get transaction reverted.
For example USDC/ETH 0.05% pool has $270 mln liquidity, while 0.3% pool only $2.7 mln. Thus slippage will be much higher within 0.3%

Tools Used

Observation

Recommendations

Allow different fee tier implementation for different assets

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