Foundry DeFi Stablecoin CodeHawks Audit Contest

Summary

Contracts have owners that have privileged rights to perform admin tasks. These owners need to be trusted to not perform malicious updates or drain funds. Having a single Externally Owned Account (EOA) as the sole owner represents a significant centralization and single point of failure.

Vulnerability Details

There are 2 instances of this issue.

Impact

A private key could be stolen, access to a key may lost by accident, an owner could act in a malicious manner. In all cases, the project is at risk for financial loss.

Tools Used

baudit: a custom static code analysis tool; manual review

Recommendations

Admin-only functions that change critical parameters should emit events and have timelocks. Events allow capturing the changed parameters so that off-chain tools/interfaces can register such changes with timelocks that allow users to evaluate them and consider if they would like to engage/exit based on how they perceive the changes as affecting the trustworthiness of the protocol or profitability of the implemented financial services. Allow only multi-signature wallets to call these functions to reduce the likelihood of an attack or unintentional loss.