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Submission Details
Severity: medium
Invalid

Unable to add liquidity to GMX

pina

Summary

The main function is to add liquidity to GMX and generate yield, but this cannot happen because the parameters for creating a deposit are incorrectly configured with address(0) for longTokenSwapPath and shortTokenSwapPath.

Vulnerability Details

If we try to perform any function to add liquidity like deposit/rebalancing etc., the protocol throws an error. Let's see it step by step:

// Create deposit
IExchangeRouter.CreateDepositParams memory _cdp =
IExchangeRouter.CreateDepositParams({
receiver: address(this),
callbackContract: self.callback,
uiFeeReceiver: self.refundee,
market: address(self.lpToken),
initialLongToken: address(self.tokenA),
initialShortToken: address(self.tokenB),
longTokenSwapPath: new address[](0), // @audit check
shortTokenSwapPath: new address[](0), // @audit check
minMarketTokens: alp.minMarketTokenAmt,
shouldUnwrapNativeToken: false,
executionFee: alp.executionFee,
callbackGasLimit: 2000000
});

This is the flow of what will happen:

  1. The interface is GMX ExchangeRouter and calls createDeposit.

  2. Then DepositHandler.sol.createDeposit() calls DepositUtils.createDeposit()

  3. DepositUtils.sol.createDeposit inside the function executes:
    MarketUtils.validateSwapPath(dataStore, params.longTokenSwapPath);
    MarketUtils.validateSwapPath(dataStore, params.shortTokenSwapPath);
    For the validation of these parameters.

  4. Next, in MarketUtils.sol.validateSwapPath() calls validateSwapMarket()

  5. Finally, calls validateEnabledMarket()

function validateEnabledMarket(DataStore dataStore, Market.Props memory market) internal view {
if (market.marketToken == address(0)) {
revert Errors.EmptyMarket();
}
​
bool isMarketDisabled = dataStore.getBool(Keys.isMarketDisabledKey(market.marketToken));
if (isMarketDisabled) {
revert Errors.DisabledMarket(market.marketToken);
}
}

https://github.com/gmx-io/gmx-synthetics/blob/228f2155a69a1be3e99614b4ade0f65e86b0209b/contracts/market/MarketUtils.sol#L192-L203

It will throw an error since the market does not exist

Impact

High, the protocol is useless without this function working correctly.

Tools Used

Manual code Review

Recommendations

Add the correct exchange path as they did in the Liquidity withdrawal.

Updates

Lead Judging Commences

hans Auditor
almost 2 years ago
hans Lead Judge almost 2 years ago
Submission Judgement Published
Invalidated
Reason: Incorrect statement

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