Sparkn

Summary

The contract ProxyFactory.sol can whitelist tokens but if any token loses its value in the future, the token cannot be removed from the whitelist and the valueless token will continue to be used for operations.

Vulnerability Details

1. Token A was added to the whitelist through the constructor in ProxyFactory.sol because it was considered to be safe for usage by the protocol

2. After a certain time X, the token has lost all its value but still continues to be used for operations

3. The protocol is aware of the token but cannot remove it from the list as there is no delisting functionality in the contract.

Impact

The contract will continue to deal with useless tokens/tokens that are not considered safe and as a result will lead to the loss of funds.

Tools Used

Manual Analysis

Recommendations

Add delisting functionality to the contract so that tokens can be removed from the whitelist if they do not have value/ are not considered to be safe anymore.