Sparkn

Summary

ProxyFactory contract is using Ownable and that can lead to irrecoverable mistakes

Vulnerability Details

Inheriting from OpenZeppelin's Ownable contract means you are using a single-step ownership transfer pattern. If an admin provides an incorrect address for the new owner this will result in none of the onlyOwner marked methods being callable again. The better way to do this is to use a two-step ownership transfer approach, where the new owner should first claim its new rights before they are transferred.

Impact

Scenario: If an incorrect address, e.g. for which the private key is not known, is used accidentally then it prevents the use of all the onlyOwner() functions forever, which includes the changing of various critical addresses and parameters. This use of incorrect address may not even be immediately apparent given that these functions are probably not used immediately. When noticed, due to a failing onlyOwner() function call, it will force the redeployment of these contracts and require appropriate changes and notifications for switching from the old to new address. This will diminish trust in the protocol and incur significant reputational damage.

Tools Used

Manual Analysis

Recommendations

Use OpenZeppelin's Ownable2Step instead of Ownable