First Flight #18: T-Swap
First Flight #18
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Submission Details
Severity: high
Valid

Lack of slippage protection in `TSwapPool::swapExactOutput` causes users to potentially receive way fewer tokens

heim

Description:

The swapExactOutput function does not include any sort of slippage protection. This function is similar to what is done in TSwapPool::swapExactInput, where the function specifies a minOutputAmount, the swapExactOutput function should specify a maxInputAmount.

Impact:

If market conditions change before the transaciton processes, the user could get a much worse swap.

Proof of Concept:

  1. The price of 1 WETH right now is 1,000 USDC

  2. User inputs a swapExactOutput looking for 1 WETH

    1. inputToken = USDC

    2. outputToken = WETH

    3. outputAmount = 1

    4. deadline = whatever

  3. The function does not offer a maxInput amount

  4. As the transaction is pending in the mempool, the market changes! And the price moves HUGE -> 1 WETH is now 10,000 USDC. 10x more than the user expected

  5. The transaction completes, but the user sent the protocol 10,000 USDC instead of the expected 1,000 USDC

Recommended Mitigation:

We should include a maxInputAmount so the user only has to spend up to a specific amount, and can predict how much they will spend on the protocol.

function swapExactOutput(
IERC20 inputToken,
+ uint256 maxInputAmount,
.
.
.
inputAmount = getInputAmountBasedOnOutput(outputAmount, inputReserves, outputReserves);
+ if(inputAmount > maxInputAmount){
+ revert();
+ }
_swap(inputToken, inputAmount, outputToken, outputAmount);
Updates

Appeal created

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

Lack of slippage protection in `TSwapPool::swapExactOutput` causes users to potentially receive way fewer tokens

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