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Submission Details
Severity: medium
Invalid

Lack of maximum supply checks when minting new `reSDL` tokens.

0xbrett8571

Summary

No checks for total supply limits when minting new reSDL tokens. This could lead to inflation.

Vulnerability Details

Stems from the SDLPoolPrimary.handleIncomingUpdate() and SDLPoolSecondary._queueNewLock() functions which mint new reSDL tokens without imposing any limits.

Specifically, in SDLPoolPrimary.handleIncomingUpdate(), the contract mints _numNewRESDLTokens by simply incrementing the lastLockId counter. There are no checks to prevent minting an excessive number of tokens: SDLPoolPrimary.handleIncomingUpdate

function handleIncomingUpdate(uint256 _numNewRESDLTokens, int256 _totalRESDLSupplyChange)
external
onlyCCIPController
returns (uint256)
{
uint256 mintStartIndex;
if (_numNewRESDLTokens != 0) {
mintStartIndex = lastLockId + 1;
lastLockId += _numNewRESDLTokens;
}

Similarly, in SDLPoolSecondary._queueNewLock(), new locks are queued without any limit besides the per-account queuedNewLockLimit. But even this limit does not restrict the total number of new tokens created. SDLPoolSecondary._queueNewLock()

function _queueNewLock(
address _owner,
uint256 _amount,
uint64 _lockingDuration
) internal {
if (newLocksByOwner[_owner].length >= queuedNewLockLimit) revert TooManyQueuedLocks();
​
​
Lock memory lock = _createLock(_amount, _lockingDuration);
queuedNewLocks[updateBatchIndex].push(lock);

Impact

The impact of this is that new reSDL tokens can be arbitrarily minted without any maximum cap. This could lead to unbounded inflation as the total supply keeps increasing.

Tools Used

Vs

Recommendations

I recommend adding a totalRESDLSupplyLimit variable and modifying the minting logic to check. This would prevent exceeding a defined maximum supply and mitigate the risk of unbounded inflation.

Updates

Lead Judging Commences

0kage Lead Judge almost 2 years ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity

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