MorpheusAI

Summary

Within the Composable Finance ecosystem's contract architecture, the capability for
an owner to modify contract ownership is facilitated via a direct invocation of the transferOwnership function.
This function subsequently triggers the _transferOwnership function to instantaneously appoint a new owner.
The process's singular-step nature introduces a margin for human error, potentially culminating in irreversible
consequences.

Vulnerability Details

Impact

Imagine a scenario where Bob, a developer at the protocol, attempts to utilize transferOwnership() for
altering the owner of a contract but mistakenly inputs an incorrect address. This mishap could lead to a
scenario where Bob irrevocably loses access to the contract's administrative functions.

Tools Used

manual review

Recommendations

Introduce a biphasic ownership transition protocol. Initially, the current owner
should nominate a successor, followed by the nominee's confirmation through an explicit acceptance action.
This procedure ensures an additional verification layer, thereby mitigating the risk of unintended ownership
transitions.

Establish a comprehensive catalog of actions accessible to privileged roles within the
ecosystem. Documenting such functionalities alongside their inherent risks aids in the systematic examination
of the codebase, ensuring that preventive measures are in place to avert similar pitfalls in the future.