In scenarios where a stream is created and claimed by a recipient who subsequently becomes blacklisted, the tokens(USDC/USDT) in the stream may become locked. This creates a situation where excess tokens cannot be withdrawn because the blacklisted user is unable to receive their tokens.
This report explores the potential impact and suggests mitigation strategies to handle such situations.
When a stream is created and claimed, if the recipient is subsequently blacklisted, the tokens intended for the recipient become inaccessible. This could lead to excess tokens being locked in the stream with no way to withdraw them.
Tokens in the stream become inaccessible once the recipient is blacklisted. The presence of excess tokens that cannot be withdrawn due to the recipient's blacklist status. Unavailable tokens represent wasted resources as they cannot be used or reclaimed.
The claim function in the SablierV2MerkleLL contract does not currently account for blacklisted users during the claim process.
POC
A creator initiates a stream for a recipient. The recipient successfully claims the stream.
The recipient is subsequently blacklisted.
The tokens in the stream are locked because the blacklisted user cannot receive them and there is no mechanism to reclaim or redistribute the excess tokens.
Manual Review
Implement a mechanism to reclaim or redistribute tokens if the recipient is unable to receive their tokensafter the stream has been claimed.
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