The Standard

Summary

OwnableUpgradeable and Ownable expose a function renounceOwnership() which can be used to surrender control of contracts with owners.

This may result in the removal of ownership for LiquidationPoolManager and SmartVaultManagerV5; ultimately breaking the protocol.

Vulnerability Details

The LiquidationPoolManager and SmartVaultManagerV5 contracts inherit from Ownable and OwnableUpgradeable respectively, and hence inherit the renounceOwnership() function.

The owner of these contracts can accidentally (or intentionally) call renounceOwnership() which will transfer the ownership to address(0). This will break all functionality of the protocol that uitlises the onlyOwner() modifier; below is a list of those functions:

• LiquidationPoolManager::setPoolFeePercentage()

• SmartVaultManagerV5::setMintFeeRate

• SmartVaultManagerV5::setBurnFeeRate

• SmartVaultManagerV5::setSwapFeeRate

• SmartVaultManagerV5::setWethAddress

• SmartVaultManagerV5::setSwapRouter2

• SmartVaultManagerV5::setNFTMetadataGenerator

• SmartVaultManagerV5::setSmartVaultDeployer

• SmartVaultManagerV5::setProtocolAddress

• SmartVaultManagerV5::setLiquidatorAddress

Tools Used

Manual Review

Recommendations

Disable renounceOwnership() if this feature is not required