First Flight #21: KittyFi

Relevant GitHub Links

https://github.com/Cyfrin/2024-08-kitty-fi/blob/main/src/KittyVault.sol#L89-111

Summary

The functions purrrCollateralToAave and purrrCollateralFromAave in the contract are protected by the onlyMeowntainer modifier, which limits their execution to the Meowntainer role. However, if the Meowntainer account is compromised, it could result in unauthorized actions, putting the entire system at risk.

Vulnerability Details

The current implementation relies solely on the onlyMeowntainer modifier to restrict access to certain critical functions. This approach creates a single point of failure; if the Meowntainer's private key is compromised or the account is otherwise taken over, the attacker could execute these functions, leading to potential misuse of funds or other malicious activities.

Impact

Unauthorized actions such as inappropriate transfer of collateral to or from Aave could occur, leading to financial losses or disruption of the system's operation.

Tools Used

Manual

Recommendations

Implement Multisig: Introduce a multisig wallet for the Meowntainer role, requiring multiple approvals before executing critical functions.

Time-Lock Mechanism: Add a time-lock to these functions, providing a buffer period during which any suspicious activity can be noticed and potentially halted.