The Standard

Summary

Single-step Ownership Transfer Can be Dangerous

Vulnerability Details

Single-step ownership transfer means that if a wrong address was passed when transferring ownership or admin rights it can mean that role is lost forever. If the admin permissions are given to the wrong address within this function, it will cause irreparable damage to the contracts SmartVaultManagerV5 and LiquidationPoolManager.

Impact

If an admin provides an incorrect address for the new owner this will result in none of the onlyOwner marked methods being callable again. 2.Funds gets stuck permanently.

Tools Used

Manual review

Recommendations

It is a best practice to use a two-step ownership transfer pattern, meaning ownership transfer gets to a "pending" state and the new owner should claim his new rights, otherwise the old owner still has control of the contract
https://github.com/OpenZeppelin/openzeppelin-contracts/blob/master/contracts/access/Ownable2Step.sol should be used.