First Flight #3: Thunder Loan
First Flight #3
Beginner FriendlyFoundryDeFiOracle
100 EXP
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Submission Details
Severity: high
Valid

Fee is not calculated correctly

bbcrypt

Summary

The fee is calculated on WETH conversion, and in flashloan it is expected as token

Vulnerability Details

​
function getCalculatedFee(IERC20 token, uint256 amount) public view returns (uint256 fee) {
// converts the value of the tokens in WETH
uint256 valueOfBorrowedToken = (amount * getPriceInWeth(address(token))) / s_feePrecision;
// calculate the fee percentage from the value in WETH
fee = (valueOfBorrowedToken * s_flashLoanFee) / s_feePrecision;
}

The above behaviour has 2 implications:

  • a flashloan with a token that has very small value to WETH will have a insignificant fee, that will not be 3% (as the initial state of the contract) from the borrowed amount

  • a flashloan with a token that has a big value to WETH( let's assume 1 token = 100 WETH) will require a extremely high fee. In this case, if we borrow 1 token, the returned fee is 3 -> valueOfBorrow = (1 * 100) / 1; fee = (100 * 3) / 100 = 3. So, after flashloaning 1 token, the user will have to return 4 tokens( 1amount + 3fee)

Impact

Low

Tools Used

Manual

Recommendations

Drop the conversion to WETH, and use following implemention:

function getCalculatedFee(uint256 amount) public view returns (uint256 fee) {
fee = (amount * s_flashLoanFee) / s_feePrecision;
}
Updates

Lead Judging Commences

0xnevi Lead Judge
almost 3 years ago
0xnevi Lead Judge almost 3 years ago
Submission Judgement Published
Validated
Assigned finding tags:

flashloan with differing fees/prices for different decimal tokens

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