Fjord Token Staking
Fjord
DeFiFoundry
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Submission Details
Severity: medium
Valid

Funds will stucked in FjordAuctionFactory contract if Auction Ended with 0 Bids

bhairava

Summary

Funds will locked in Auction factory contract if any Auction ended with no bids.

Vulnerability Details

When any auction ended with no bids then Auctioned Funds sent back to Owner,

function auctionEnd() external {
...
...
​
if (totalBids == 0) {
auctionToken.transfer(owner, totalTokens);
return;
}

https://github.com/Cyfrin/2024-08-fjord/blob/main/src/FjordAuction.sol#L192-L195

In Auction contract ownerset via contructor

constructor(
address _fjordPoints,
address _auctionToken,
uint256 _biddingTime,
uint256 _totalTokens
) {
...
...
owner = msg.sender;

https://github.com/Cyfrin/2024-08-fjord/blob/main/src/FjordAuction.sol#L134

If here we closely look then come to know that `owner` here is AuctionFactorycontract from where All Auctions are deployed

​
function createAuction(
address auctionToken,
uint256 biddingTime,
uint256 totalTokens,
bytes32 salt
) external onlyOwner {
address auctionAddress = address(
new FjordAuction{ salt: salt }(fjordPoints, auctionToken, biddingTime, totalTokens)
);

https://github.com/Cyfrin/2024-08-fjord/blob/main/src/FjordAuctionFactory.sol#L58-L60

In AuctionFactory contract there is no such methods to rescue those stucked funds

So thats why funds will be locked in that contract forever.

Impact

refer above

Tools Used

manual review

Recommendations

Auction Factory contract should implement some functions that will help to extract locked funds

Updates

Lead Judging Commences

inallhonesty Lead Judge 10 months ago
Submission Judgement Published
Validated
Assigned finding tags:

If no bids are placed during the auction, the `auctionToken` will be permanently locked within the `AuctionFactory`

An auction with 0 bids will get the `totalTokens` stuck inside the contract. Impact: High - Tokens are forever lost Likelihood - Low - Super small chances of happening, but not impossible

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