Beedle - Oracle free perpetual lending

Summary

In the Fees.sol, the sellProfits function swaps tokens for WETH without slippage protection. This lack of protection could potentially allow external actors to manipulate the pool price during the transaction, leading to unfavorable swap rates.

Vulnerability Details

In the Fees.sol contract, the sellProfits function is used to function in the contract utilizes the Uniswap v3 swapRouter to convert token fees into WETH. However, this function isn't protected by access control and the parameter amountOutMinimum is set to 0 in the swap function, meaning that there is no lower limit on the amount of WETH that should be received from the swap. This opens the potential for price manipulation or high slippage, leading to significantly less WETH than expected being received from the swap.

Impact

Swaps will be sandwiched causing a loss of funds for the protocol which ends up leading to less rewards available for the stakers.

Tools Used

Manual review

Recommendations

Implementing slippage protection in the sellProfits function to ensure a minimum amount of WETH is received in each swap.