Tadle

Tadle
DeFiFoundry
27,750 USDC
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Submission Details
Severity: high
Valid

DoS Of `TokenManager::Withdraw` due to typo in calling `CapitalPool::approve`

Summary

Vulnerability Details

Consider the call chain that occurs when a user calls TokenManager::withdraw to withdraw their funds.

User -> TokenManager::withdraw -> (if withdraw token == wrappedNativeToken) TokenManager::_transfer -> (if from == capitalPool && token.allowance(capitalPool, tokenManager) == 0) CapitalPool::approve(address(this)).

Now let's consider the execution of the CapitalPool::approve function, the main task of which is to give permission to spend tokenManager tokens.

function approve(address tokenAddr) external {
address tokenManager = tadleFactory.relatedContracts(
RelatedContractLibraries.TOKEN_MANAGER
);
(bool success, ) = tokenAddr.call(
abi.encodeWithSelector(
APPROVE_SELECTOR,
tokenManager,
type(uint256).max
)
);
if (!success) {
revert ApproveFailed();
}
}

Note that the parameter passed to the function is the address of the token, not the address to give allowance to.

Therefore, since approve is actually called with the tokenManager address, the call written below will be to the tokenManager address, not the output token. And tokenManager does not have a function with the required signature, so the call will be revert. So the whole call of the withdraw function will be revert.

tokenAddr.call(
abi.encodeWithSelector(
APPROVE_SELECTOR,
tokenManager,
type(uint256).max
)
);

Impact

On the one hand, this error blocks the basic functionality of the protocol and blocks user facilities.

On the other hand, the CapitalPool::approve function is external and anyone can give the desired allowance. Therefore, the functionality is blocked in case developers do not call this function themselves or users do not guess to call it themselves.

Thus, severity:medium

Tools Used

Manual review

Recommendations

Fix the typo

ICapitalPool(_capitalPoolAddr).approve(_token);
Updates

Lead Judging Commences

0xnevi Lead Judge about 1 year ago
Submission Judgement Published
Validated
Assigned finding tags:

finding-TokenManager-approve-wrong-address-input

If we consider the correct permissioned implementation for the `approve()` function within `CapitalPool.sol`, this would be a critical severity issue, because the withdrawal of funds will be permanently blocked and must be rescued by the admin via the `Rescuable.sol` contract, given it will always revert [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/CapitalPool.sol#L36-L38) when attempting to call a non-existent function selector `approve` within the TokenManager contract. The argument up in the air is since the approval function `approve` was made permisionless, the `if` block within the internal `_transfer()` function will never be invoked if somebody beforehand calls approval for the TokenManager for the required token, so the transfer will infact not revert when a withdrawal is invoked. I will leave open for escalation discussions, but based on my first point, I believe high severity is appropriate.

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