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Submission Details
Severity: medium
Valid

Stale price can be used to shutdown market

T1MOH

Summary

Stale price can be used to shutdown market. Price is not updated on shutdown. Usually price is updated due to activity on orderbook.
But there is no guarantees that in extreme situation when protocol's collRatio is too low, this activity in orderbook will remain. As a result collRatio will be calculated with stale price (potentially lower than current) resulting in market shutdown by mistake.

Vulnerability Details

Function _getAssetCollateralRatio() is used to calculate current collateral ratio. This function uses LibOracle.getPrice() which returns last saved price (potentially stale)

function shutdownMarket(address asset)
external
onlyValidAsset(asset)
isNotFrozen(asset)
nonReentrant
{
@> uint256 cRatio = _getAssetCollateralRatio(asset);
if (cRatio > LibAsset.minimumCR(asset)) {
revert Errors.SufficientCollateral();
} else {
/* SHUTDOWN */
}
...
}
​
function _getAssetCollateralRatio(address asset)
private
view
returns (uint256 cRatio)
{
STypes.Asset storage Asset = s.asset[asset];
return Asset.zethCollateral.div(LibOracle.getPrice(asset).mul(Asset.ercDebt));
}

Impact

Potentially higher than current price will be used in calculation of market collateralRatio. It can overestimate debt and shutdown market with sufficient collRatio by mistake

Tools Used

Manual Review

Recommendations

Firstly update price:

function shutdownMarket(address asset)
external
onlyValidAsset(asset)
isNotFrozen(asset)
nonReentrant
{
+ uint256 oraclePrice = LibOracle.getOraclePrice(asset);
+ asset.setPriceAndTime(oraclePrice, getOffsetTime());
uint256 cRatio = _getAssetCollateralRatio(asset);
if (cRatio > LibAsset.minimumCR(asset)) {
revert Errors.SufficientCollateral();
} else {
/* SHUTDOWN */
}
...
}
Updates

Lead Judging Commences

0xnevi Lead Judge
about 2 years ago
0xnevi Lead Judge about 2 years ago
Submission Judgement Published
Invalidated
Reason: Other
0xnevi Lead Judge
about 2 years ago
0xnevi Lead Judge about 2 years ago
Submission Judgement Published
Validated
Assigned finding tags:

finding-638

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