The Standard

Summary

The SmartVaultV3::swap() function is vulnerable to sandwich attacks due to a lack of slippage protection. The issue arises from the calculation of amountOutMinimum and the default setting of sqrtPriceLimitX96 to 0.

Vulnerability Details

In the calculateMinimumAmountOut() function, when collateralValueMinusSwapValue >= requiredCollateralValue, the return value becomes 0. This, combined with the default sqrtPriceLimitX96 of 0 in the swap() function, exposes the vault owner to sandwich attacks.

Impact

A sandwich attack can lead to financial losses for the vault owner. The default setting of sqrtPriceLimitX96 allows potential exploitation, jeopardizing the security of the smart contract.

Tools Used

Manual Review.

Recommendations

1. Ensure that the amountOutMinimum in calculateMinimumAmountOut() is never set to 0.

2. Specify a non-zero value for the sqrtPriceLimitX96 parameter in the swap() function to establish a stop price.