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BeedleFi
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Submission Details
Severity: medium

Contract owner is a single point of failure and centralization risk

madalad

Summary

Throughout the codebase Ownable is used to give the dev team special privileges, which can be abused either by a malicious owner or in the case of a private key hack.

Vulnerability Details

Utilizing an externally owned account (EOA) as the owner of contracts poses significant dangers of centralization and represents a vulnerable single point of failure. A single private key is susceptible to theft during a hacking incident, or the sole possessor of the key may encounter difficulties in retrieving it when required. It is advisable to contemplate transitioning to a multi-signature arrangement or implementing a role-based authorization framework.

In Lender, the owner may set lender and borrower fees at will without notice. This may be used to catch unsuspecting users off guard and benefit certain parties. For example, the lender fee can be set as high as 50%.

File: src\Lender.sol
​
081: /// @notice set the lender fee
082: /// can only be called by the owner
083: /// @param _fee the new fee
084: function setLenderFee(uint256 _fee) external onlyOwner {
085: if (_fee > 5000) revert FeeTooHigh();
086: lenderFee = _fee;
087: }
088:
089: /// @notice set the borrower fee
090: /// can only be called by the owner
091: /// @param _fee the new fee
092: function setBorrowerFee(uint256 _fee) external onlyOwner {
093: if (_fee > 500) revert FeeTooHigh();
094: borrowerFee = _fee;
095: }
096:
097: /// @notice set the fee receiver
098: /// can only be called by the owner
099: /// @param _feeReceiver the new fee receiver
100: function setFeeReceiver(address _feeReceiver) external onlyOwner {
101: feeReceiver = _feeReceiver;
102: }

Also, the staking token Beedle allows the owner to mint arbitrary amounts of tokens at any time. A malicious owner can mint themselves large amounts of the token and sell them on the market, securing large profits at the cost of other holders.

File: src\Beedle.sol
​
36: function mint(address to, uint256 amount) external onlyOwner {
37: _mint(to, amount);
38: }

Impact

A malicious/compromised owner can, in the worst case, inflate the Beedle token arbitrarily and effectively steal all value from current token holders.

Tools Used

Manual review

Recommendations

Minimise attack surface by utilising a multi-sig wallet or DAO governance contract as the owner, and make users explicitly aware of the inherent centralization risks of the system.

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