Tadle

Tadle
DeFiFoundry
27,750 USDC
View results
Submission Details
Severity: low
Valid

Offer maker might steal taker's collateral by settling in the last moment

Summary

Someone could create offer in protected mode and wait for last moment with settlement, to not give any time span for his takers to settle their own offers.

Vulnerability Details

  • Alice creates offer in protected mode

  • Mike takes that offer and list his own

  • Alice takes Mike offer (from the same or different wallet)

  • Alice do not settle till the very last moment, she frontrun updateMarketPlaceStatus called by protocol owner

Impact

Mike does not have any time to settle his offer, which means that his collateral will be taken and transfered to Alice.

At this time the only thing Mike could do it, to try get these tokens from different source, which might be hard, and he would loss money in such trade.

Tools Used

Manual Review

Recommendations

Once Alice settles, her tokens should be transferred to the target recipients. There is no need to transfer it first to Mike and then Mike transfering it to Alice.

Updates

Lead Judging Commences

0xnevi Lead Judge 12 months ago
Submission Judgement Published
Invalidated
Reason: Design choice
Assigned finding tags:

[invalid] finding-DeliveryPlace-owner-do-not-call-settleAskMaker

Invalid, the makers are incentivized to settle offers to earn maker bonuses when subsequent takers and makers make trade using the original collateral put up for points as well as get back their initial collateral. Additionally, if they do not settle on time, they will lose all their initial collateral, forcing the `owner` to come in and perform the settlement and retrieving that collateral. This is noted as a design decision [here](https://tadle.gitbook.io/tadle/how-tadle-works/features-and-terminologies/settlement-and-collateral-rate) If all else fails, the `owner` can come in to settle as seen [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/DeliveryPlace.sol#L254-L256) and [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/DeliveryPlace.sol#L365-L367) offers to allow closing offers and subsequently allowing refunds. I acknowledge that perhaps a more decentralized

Appeal created

meeve Submitter
12 months ago
0xnevi Lead Judge 11 months ago
Submission Judgement Published
Validated
Assigned finding tags:

finding-PreMarkets-last-minute-settle-cascade-collateral-penalize

See details in issue #821 comments

Support

FAQs

Can't find an answer? Chat with us on Discord, Twitter or Linkedin.