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Submission Details
Severity: medium
Invalid

Wrong startingShortWithinOracleRange may cause order book collision

nyx

Summary

Vulnerability Details

//@dev: force hint to be within 1% of oracleprice
bool startingShortWithinOracleRange = shortPrice
<= oraclePrice.mul(1.01 ether)
&& s.shorts[asset][prevId].price >= oraclePrice;

The startingShortWithinOracleRange is intended to represent whether the shortPrice is within 1% of the oraclePrice. However, multiplying oraclePrice with 1.01 ether is incorrect, potentially leading to an incorrect state where startingShortWithinOracleRange is always true.

shortPrice(18 decimal) <= oraclePrice(18 decimal).mul(1.01 ether)(18 decimal) ==> this will always true

if (startingShortWithinOracleRange || isExactStartingShort) {
//@dev only consider the x% above oraclePrice if there are prev Shorts with price >= oraclePrice
s.asset[asset].startingShortId = shortHintId;
return;
} else if (allShortUnderOraclePrice) {
s.asset[asset].startingShortId = Constants.HEAD;
return;
}

The startingShortId will always equal to shortHintId, and It may cause to leading to potential mismanagement of order books.

) {
//@dev if match and match price is gt .5% to saved oracle in either direction, update startingShortId
LibOrders.updateOracleAndStartingShortViaThreshold(
asset, b.oraclePrice, incomingBid, shortHintArray
);
b.shortHintId = b.shortId = Asset.startingShortId;
return bidMatchAlgo(asset, incomingBid, orderHintArray, b);
}

This can result in order book collisions inside the bidMatchAlgo() function, causing inaccurate pricing and potential loss for users.

Impact

Order book collision and potential loss of funds.

Tools Used

Manual Review

Recommendations

Multiply oraclePrice with 1.01.

Updates

Lead Judging Commences

0xnevi Lead Judge
almost 2 years ago
0xnevi Lead Judge almost 2 years ago
Submission Judgement Published
Invalidated
Reason: Other

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