Submission Details
Severity:
Precision loss in LiquidationPool.distributeAssets() can lead to loss of funds
Summary
Division before multiplication causes precision loss in LiquidationPool::distributeAssets().
Vulnerability Details
When Calculating the costInEuros while distributing assets, division before multiplication truncate costInEuros and incurs precision loss, then distributed amounts of assets holders staked can result in loss of funds from pool.
function distributeAssets(ILiquidationPoolManager.Asset[] memory _assets, uint256 _collateralRate, uint256 _hundredPC) external payable {
consolidatePendingStakes();
(,int256 priceEurUsd,,,) = Chainlink.AggregatorV3Interface(eurUsd).latestRoundData();
uint256 stakeTotal = getStakeTotal();
uint256 burnEuros;
uint256 nativePurchased;
for (uint256 j = 0; j < holders.length; j++) {
Position memory _position = positions[holders[j]];
uint256 _positionStake = stake(_position);
if (_positionStake > 0) {
for (uint256 i = 0; i < _assets.length; i++) {
ILiquidationPoolManager.Asset memory asset = _assets[i];
if (asset.amount > 0) {
(,int256 assetPriceUsd,,,) = Chainlink.AggregatorV3Interface(asset.token.clAddr).latestRoundData();
uint256 _portion = asset.amount * _positionStake / stakeTotal;
uint256 costInEuros = _portion * 10 ** (18 - asset.token.dec) * uint256(assetPriceUsd) / uint256(priceEurUsd)
* _hundredPC / _collateralRate;
if (costInEuros > _position.EUROs) {
_portion = _portion * _position.EUROs / costInEuros;
costInEuros = _position.EUROs;
}
_position.EUROs -= costInEuros;
rewards[abi.encodePacked(_position.holder, asset.token.symbol)] += _portion;
burnEuros += costInEuros;
if (asset.token.addr == address(0)) {
nativePurchased += _portion;
} else {
IERC20(asset.token.addr).safeTransferFrom(manager, address(this), _portion);
}
}
}
}
positions[holders[j]] = _position;
}
if (burnEuros > 0) IEUROs(EUROs).burn(address(this), burnEuros);
returnUnpurchasedNative(_assets, nativePurchased);
}
Impact
Liquidation pools may not receive the due amounts of assets due to precision loss. Holders will keep more stakes than they should.
Tools Used
Manual review
Recommendations
Make sure to multiply first before division to prevent precision loss.
Prize pool breakdown
Total prize
20,000 USDC
nSLOC
60933 USDC / LOC
17,500 USDC
2,500 USDC
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