The Standard
The Standard
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Submission Details
Severity: medium
Invalid

Total minted did not account the fee sent to protocol allowing users to have more than actual EURO tokens causing erroneous calculation

thedoctor

Summary

The SmartVaultV3::burn() function is used to burn the tokens of sEURO and send the fee to the vault manager.

Vulnerability Details

The minted amount is the sEURO amount minted, and did not account for the fees sent to Smart Vault Manager in SmartVaultV3::burn(). At first, it may need mean much, but the minted sEURO total amount is a critical amount for calculating if the user is undercollateralized, can never removeCollateral and have a higher minimum amount of required collateral for swaps than the actual minimum.

function burn(uint256 _amount) external ifMinted(_amount) {
uint256 fee = _amount * ISmartVaultManagerV3(manager).burnFeeRate() / ISmartVaultManagerV3(manager).HUNDRED_PC();
minted = minted - _amount;
EUROs.burn(msg.sender, _amount);
IERC20(address(EUROs)).safeTransferFrom(msg.sender, ISmartVaultManagerV3(manager).protocol(), fee);
emit EUROsBurned(_amount, fee);
}

Impact

sEURO amount minted will not reflect its true state, causing the vault to be actually under-collateralized, can never removeCollateral and have a higher minimum amount of required collateral for swaps than the actual sEURO balance of the vault.

Tools Used

Manual Review

Recommendations

Account for the fees sent and deduct from the minted amount.

function burn(uint256 _amount) external ifMinted(_amount) {
uint256 fee = _amount * ISmartVaultManagerV3(manager).burnFeeRate() / ISmartVaultManagerV3(manager).HUNDRED_PC();
-- minted = minted - _amount;
++ minted = minted - _amount - fee;
EUROs.burn(msg.sender, _amount);
IERC20(address(EUROs)).safeTransferFrom(msg.sender, ISmartVaultManagerV3(manager).protocol(), fee);
emit EUROsBurned(_amount, fee);
}
Updates

Lead Judging Commences

hrishibhat Lead Judge over 1 year ago
Submission Judgement Published
Validated
Assigned finding tags:

fee-loss

hrishibhat Lead Judge over 1 year ago
Submission Judgement Published
Invalidated
Reason: Design choice
Assigned finding tags:

fee-loss

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