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Submission Details
Severity: medium
Valid

```LibWstethEthOracle::getWstethEthPrice``` returns wrong ```wstETH/ETH``` price in some conditions impacting system operations

kiteweb3

Summary

The LibWstethEthOracle::getWstethEthPrice function is designed in the system to compute the wstETH/ETH price . On the top of the LibWstethEthOracle contract a detailed NatSpec describes the price computation logic. Reported here for clarity: "It then computes a wstETH:ETH price by taking the minimum of (3) and either the average of (1) and (2) if (1) and (2) are within MAX_DIFFERENCE from each other or (1)."

According to the NatSpec, the contract should compute the wstETH:ETH price by taking the minimum of the the redemption value or the average of the Chainlink and Uniswap oracle prices if their percent difference is within a specified threshold (MAX_DIFFERENCE) or the Chainlink oracle price if the percent difference exceeds this threshold. However, the actual implementation does not handle the scenario where the percent difference exceeds MAX_DIFFERENCE. Consequently, users interacts with the system, such as minting fertilizer tokens, using inaccurate price data.

Vulnerability Details

The LibWstethEthOracle::getWstethEthPrice lacks explicit handling for scenarios where the percent difference between the Chainlink and Uniswap oracle prices is greater then MAX_DIFFERENCE. This omission leads to situations where the contract does not default to the Chainlink price as intended, affecting the accuracy and reliability of the wstETH:ETH price computation.

/**
* @title Wsteth Eth Oracle Library
* @author brendan
* @notice Computes the wstETH:ETH price.
* @dev
* The oracle reads from 4 data sources:
* a. wstETH:stETH Redemption Rate: (0x7f39C581F595B53c5cb19bD0b3f8dA6c935E2Ca0)
* b. stETH:ETH Chainlink Oracle: (0x86392dC19c0b719886221c78AB11eb8Cf5c52812)
* c. wstETH:ETH Uniswap Pool: (0x109830a1AAaD605BbF02a9dFA7B0B92EC2FB7dAa)
* d. stETH:ETH Redemption: (1:1)
*
* It then computes the wstETH:ETH price in 3 ways:
* 1. wstETH -> ETH via Chainlink: a * b
* 2. wstETH -> ETH via wstETH:ETH Uniswap Pool: c * 1
* 3. wstETH -> ETH via stETH redemption: a * d
*
@> * It then computes a wstETH:ETH price by taking the minimum of (3) and either the average of (1) and (2)
@> * if (1) and (2) are within `MAX_DIFFERENCE` from each other or (1).
**/
​
​
function getWstethEthPrice(uint256 lookback) internal view returns (uint256 wstethEthPrice) {
​
uint256 chainlinkPrice = lookback == 0 ?
LibChainlinkOracle.getPrice(WSTETH_ETH_CHAINLINK_PRICE_AGGREGATOR, LibChainlinkOracle.FOUR_DAY_TIMEOUT) :
LibChainlinkOracle.getTwap(WSTETH_ETH_CHAINLINK_PRICE_AGGREGATOR, LibChainlinkOracle.FOUR_DAY_TIMEOUT, lookback);
​
// Check if the chainlink price is broken or frozen.
if (chainlinkPrice == 0) return 0;
​
uint256 stethPerWsteth = IWsteth(C.WSTETH).stEthPerToken();
chainlinkPrice = chainlinkPrice.mul(stethPerWsteth).div(CHAINLINK_DENOMINATOR);
​
​
// Uniswap V3 only supports a uint32 lookback.
if (lookback > type(uint32).max) return 0;
uint256 uniswapPrice = LibUniswapOracle.getTwap(
lookback == 0 ? LibUniswapOracle.FIFTEEN_MINUTES :
uint32(lookback),
WSTETH_ETH_UNIV3_01_POOL, C.WSTETH, C.WETH, ONE
);
​
// Check if the uniswapPrice oracle fails.
if (uniswapPrice == 0) return 0;
​
@> if (LibOracleHelpers.getPercentDifference(chainlinkPrice, uniswapPrice) < MAX_DIFFERENCE) {
@> wstethEthPrice = chainlinkPrice.add(uniswapPrice).div(AVERAGE_DENOMINATOR);
@> if (wstethEthPrice > stethPerWsteth) wstethEthPrice = stethPerWsteth;
@> wstethEthPrice = wstethEthPrice.div(PRECISION_DENOMINATOR);
}
}
}

Impact

The absence of the missing return of the Chainlink oracle price in scenarios of significant price discrepancy between the Chainlink and Uniswap oracles (LibOracleHelpers.getPercentDifference(chainlinkPrice, uniswapPrice) > MAX_DIFFERENCE) can lead to a scenario where the contract uses an average price that does not accurately reflect market conditions. The smart contract will operate with an inaccurate wstETH:ETH price, impacting operations dependent on this price. This could result in financial losses for users and undermine the integrity of the system.

For example, in the beanstalk system, the FertilizerFacet::mintFertilizer function relies on the LibWstethEthOracle::getWstethEthPrice to fetch the wstETH:ETH price from. This price is crucial for calculating the amount of Fertilizer tokens that can be acquired with the provided tokenAmountIn. However, if this function returns an inaccurate price, it would not reflect the actual price of the asset. Consequently, users could continue to mint fertilizer tokens using this inaccurate price data, leading to transactions occurring at incorrect prices.

Tools Used

Manual review

Recommendations

Modify the LibWstethEthOracle::getWstethEthPrice function to include explicit logic for handling the case where the percent difference between the Chainlink and Uniswap prices is greater then MAX_DIFFERENCE.

if (LibOracleHelpers.getPercentDifference(chainlinkPrice, uniswapPrice) < MAX_DIFFERENCE) {
wstethEthPrice = chainlinkPrice.add(uniswapPrice).div(AVERAGE_DENOMINATOR);
+ } else {
+ wstethEthPrice = chainlinkPrice;
+ }
if (wstethEthPrice > stethPerWsteth) wstethEthPrice = stethPerWsteth;
wstethEthPrice = wstethEthPrice.div(PRECISION_DENOMINATOR);
- }
Updates

Lead Judging Commences

giovannidisiena Lead Judge about 1 year ago
Submission Judgement Published
Validated
Assigned finding tags:

wstETH:ETH price max difference

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