First Flight #21: KittyFi
First Flight #21
Beginner FriendlyDeFiFoundry
100 EXP
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Submission Details
Severity: medium
Invalid

Incorrect Calculation of toDistribute in KittyPool::purrgeBadPawsition

ayamercy

Summary

The calculation of the toDistribute amount in the KittyPool::purrgeBadPawsition function is incorrect, leading to potential errors in distributing the appropriate collateral after purging a user's bad debt.

Vulnerability Details

In the KittyPool::purrgeBadPawsition function, the toDistribute value is intended to represent the amount of collateral that should be distributed from a user's vault based on the redeemPercent. However, the calculation mistakenly uses PRECISION (a value of 1e18) in a way that causes the toDistribute value to be incorrect. Specifically, when the redeemPercent is much smaller than PRECISION, the result of the multiplication and division produces an incorrect, often zero, value.

The problematic code is as follows:

function purrgeBadPawsition(address _user) external returns (uint256 _totalAmountReceived) {
//...
​
uint256 vaults_length = vaults.length;
​
for (uint256 i; i < vaults_length; ) {
IKittyVault _vault = IKittyVault(vaults[i]);
uint256 vaultCollateral = _vault.getUserVaultMeowllateralInEuros(_user);
@> uint256 toDistribute = vaultCollateral.mulDiv(redeemPercent, PRECISION);
uint256 extraCollateral = vaultCollateral - toDistribute;
​
uint256 extraReward = toDistribute.mulDiv(REWARD_PERCENT, PRECISION);
extraReward = Math.min(extraReward, extraCollateral);
_totalAmountReceived += (toDistribute + extraReward);
​
_vault.executeWhiskdrawal(msg.sender, toDistribute + extraReward);
​
unchecked {
++i;
}
}
}
PoC

Add the following to KittyFiTest.t.sol test file:

function test_incorrectToDestributeValue() public pure{
uint256 PRECISION = 1e18;
uint256 vaultCollateral = 1000;
uint256 redeemPercent = 70; // 70%
​
uint256 toDistribute = vaultCollateral.mulDiv(redeemPercent, PRECISION);
// we get 0 instead of 700€!!
assertEq(toDistribute, 0);
​
}

Impact

  • Incorrect Collateral Distribution: The incorrect toDistribute value can lead to insufficient distribution of collateral, potentially leaving users with unresolved debts or misallocated rewards.

  • Financial Discrepancies: Users may experience financial discrepancies due to incorrect distribution amounts, leading to potential loss of funds or imbalanced contract states.

Tools Used

  • Manual review

  • Foundry (Testing Framework)

Recommendations

  • Correct the Calculation: Modify the calculation to correctly compute the toDistribute value.

  • Alternatively, ensure that redeemPercent is already a proportion without the need to divide by PRECISION.

  • Implement Range Validation: Add validation checks to ensure that toDistribute falls within a reasonable range and that the result is non-zero when expected.

Updates

Lead Judging Commences

shikhar229169 Lead Judge over 1 year ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity

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