The Standard

The Standard
DeFiHardhat
20,000 USDC
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Submission Details
Severity: medium
Invalid

distributeAssets() does not check the status of the Arbitrum sequencer in Chainlink feeds.

Summary

Given that the contract will be deployed on any EVM chain, when utilizing Chainlink in L2 chains like Arbitrum, it's important to ensure that the prices provided are not falsely perceived as fresh particularly in scenarios where the sequencer might be non-operational. Hence, a critical step involves confirming the active status of the sequencer before trusting the data returned by the oracle.

Vulnerability Details

In the event of an Arbitrum Sequencer outage, the oracle data may become outdated, potentially leading to staleness. While the function distributeAssets() provides checks if a price is stale, it does not check if Arbirtrum Sequencer is active. Since OracleLib.sol library is used to check the Chainlink Oracle for stale data, it is important to add this verification. You can review Chainlink docs on L2 Sequencer Uptime Feeds for more details on this. https://docs.chain.link/data-feeds/l2-sequencer-feeds

Impact

In the scenario where the Arbitrum sequencer experiences an outage, the protocol will enable users to maintain their operations based on the previous (stale) rates.

Tools Used

Manual Review

Recommendations

There is a code example on Chainlink docs for this scenario: https://docs.chain.link/data-feeds/l2-sequencer-feeds#example-code. For illustrative purposes this can be:

function isSequencerAlive() internal view returns (bool) {
(, int256 answer, uint256 startedAt,,) = sequencer.latestRoundData();
if (block.timestamp - startedAt <= GRACE_PERIOD_TIME || answer == 1)
return false;
return true;
}
function distributeAssets(ILiquidationPoolManager.Asset[] memory _assets, uint256 _collateralRate, uint256 _hundredPC) external payable {
consolidatePendingStakes();
(,int256 priceEurUsd,,,) = Chainlink.AggregatorV3Interface(eurUsd).latestRoundData();
....//remaining parts of the function
Updates

Lead Judging Commences

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

Arbitrum-sequncer

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

Arbitrum-sequncer

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