Sparkn

CodeFox Inc.
DeFiFoundryProxy
15,000 USDC
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Submission Details
Severity: medium

Unchecked Arithmetic

Summary

This report highlights a potential vulnerability found in the Distributor.sol smart contract code. The vulnerability relates to the usage of unchecked arithmetic operations in loop counters. This vulnerability could potentially lead to unintended behavior and security risks.

Description

The vulnerability arises from the usage of unchecked arithmetic operations (e.g., unchecked { ++i; }) within the Distributor.sol contract's logic. Unchecked arithmetic operations can result in unexpected behavior when the loop counter overflows. An attacker could potentially exploit this vulnerability to manipulate loop counters, causing the loop to continue executing when it should have stopped or vice versa.

PoC

function maliciousDistribute(address token, address[] memory winners, uint256[] memory percentages, bytes memory data)
external
{
if (msg.sender != FACTORY_ADDRESS) {
revert Distributor__OnlyFactoryAddressIsAllowed();
}
// Overflowing the loop counter intentionally
uint256 overflowPercentage = uint256(-1) - BASIS_POINTS + 1;
uint256[] memory manipulatedPercentages = new uint256[](1);
manipulatedPercentages[0] = overflowPercentage;
// Trigger the unchecked loop
_distribute(token, winners, manipulatedPercentages, data);
}

In this PoC, the attacker sets the percentage value such that it overflows when added to BASIS_POINTS. This results in the loop counter being manipulated and the loop continuing beyond the intended number of iterations.

Impact

If left unaddressed, this vulnerability could potentially lead to incorrect behavior in the contract's logic, causing unexpected token distributions or other undesired outcomes. While the current context might not pose a significant risk, addressing this vulnerability is recommended for maintaining code security and preventing unexpected behavior in future scenarios.

Tools Used

No specialized tools were used to identify this vulnerability. The vulnerability was identified through manual code review and analysis.

Recommendations

Replace unchecked arithmetic operations with safe arithmetic operations throughout the contract's logic. Use standard arithmetic notations (i++, i = i + 1, etc.) to ensure loop counters behave as expected and avoid overflows and avoid using unchecked.

Addressing this vulnerability will enhance the security and reliability of the Distributor.sol contract, preventing potential issues related to unchecked arithmetic and maintaining expected contract behavior.

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