The Standard

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

No check if Arbitrum L2 sequencer is down in Chainlink feeds

Summary

There is no validation to ensure L2 sequencer is down which can cause a problem with distributeAssets function.****

Vulnerability Details

function distributeAssets(ILiquidationPoolManager.Asset[] memory _assets, uint256 _collateralRate, uint256 _hundredPC) external payable {
consolidatePendingStakes();
(,int256 priceEurUsd,,,) = Chainlink.AggregatorV3Interface(eurUsd).latestRoundData();
uint256 stakeTotal = getStakeTotal();
uint256 burnEuros;
uint256 nativePurchased;
for (uint256 j = 0; j < holders.length; j++) {
Position memory _position = positions[holders[j]];
uint256 _positionStake = stake(_position);
if (_positionStake > 0) {
for (uint256 i = 0; i < _assets.length; i++) {
ILiquidationPoolManager.Asset memory asset = _assets[i];
if (asset.amount > 0) {
=> (,int256 assetPriceUsd,,,) = Chainlink.AggregatorV3Interface(asset.token.clAddr).latestRoundData();
uint256 _portion = asset.amount * _positionStake / stakeTotal;
uint256 costInEuros = _portion * 10 ** (18 - asset.token.dec) * uint256(assetPriceUsd) / uint256(priceEurUsd)
* _hundredPC / _collateralRate;
if (costInEuros > _position.EUROs) {
_portion = _portion * _position.EUROs / costInEuros;
costInEuros = _position.EUROs;
}
_position.EUROs -= costInEuros;
rewards[abi.encodePacked(_position.holder, asset.token.symbol)] += _portion;
burnEuros += costInEuros;
if (asset.token.addr == address(0)) {
nativePurchased += _portion;
} else {
IERC20(asset.token.addr).safeTransferFrom(manager, address(this), _portion);
}
}
}
}
positions[holders[j]] = _position;
}
if (burnEuros > 0) IEUROs(EUROs).burn(address(this), burnEuros);
returnUnpurchasedNative(_assets, nativePurchased);
}

Using Chainlink in L2 chains such as Arbitrum requires to check if the sequencer is down to avoid prices from looking like they are fresh although they are not.

Impact

when the sequencer is down, stale price is used for oracle and this can result in the incorrect rewards distribution, if the stale price is > current price then the distribute function will DOS.

Tools Used

manual review

Recommendations

add checks to ensure the sequencer is not down.

It is recommended to follow the code example of Chainlink: https://docs.chain.link/data-feeds/l2-sequencer-feeds#example-code

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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