Tadle

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

`TokenManager::_transfer()` not compatible with fee on transfer and rebasing token

Summary

TokenManager::_transfer() not compatible with fee on transfer and rebasing token

Vulnerability Details

if (fromBalanceAft != fromBalanceBef - _amount) {
revert TransferFailed();
}
if (toBalanceAft != toBalanceBef + _amount) {
revert TransferFailed();
}
}

As can be seen in the code above, in the _transfer function there is a check on the balance of tokens before and after for the from and to addresses. This does not work with fee on transfer tokens because as the name suggests, when transferring tokens it requires a fee. In addition, this mechanism does not work with rebasing tokens because the balance changes.

Impact

_transfer function will always revert

Tools Used

Manual Review

Recommended Mitigation

Make sure fee on transfer and rebasing tokens not include in whitelist token

Updates

Lead Judging Commences

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

finding-TokenManager-FOT-Rebasing

Valid medium, there are disruptions to the ability to take market actions. The following functions will be disrupted without the possibiliy of reaching settlement, since the respective offers cannot be created/listed regardless of mode when transferring collateral token required to the CapitalPool contract or when refunding token from user to capital pool during relisting. So withdrawal is not an issue - `createOffer()` - reverts [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/PreMarkets.sol#L96-L102) - `listOffer()` - reverts [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/PreMarkets.sol#L355-L362) - `relistOffer()` - reverts [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/PreMarkets.sol#L515-L521) - `createTaker()` - reverts [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/core/PreMarkets.sol#L831-L836) I believe medium severity is appropriate although the likelihood is high and impact is medium (only some level of disruption i.e. FOT tokens not supported and no funds at risk)

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