Fjord Token Staking

Vulnerability Details:

The createAuction function assumes that the ERC20 token transfer will always succeed. However, some tokens (like USDT) can fail silently, potentially leading to auctions created without the correct token amount transferred.

Impact:

This could result in auctions being created without the specified token amount, leading to discrepancies between the expected and actual token amounts in the auction contract.

Proof of Concept:

Link to code

This line assumes the transfer will always succeed, but it may fail silently for some tokens.

Tools Used:

Recommendations:

1. Use SafeERC20 for token transfers:

   import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";

   ​

   contract FjordAuctionFactory {

   using SafeERC20 for IERC20;

   ​

   function createAuction(...) external onlyOwner {

   // ...

   IERC20(auctionToken).safeTransferFrom(msg.sender, auctionAddress, totalTokens);

   }

   }

2. Alternatively, check the return value of transferFrom and revert if it's false.