Tadle

Tadle
DeFiFoundry
27,750 USDC
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Submission Details
Severity: low
Invalid

Centralization Risk for Trusted Owners Break Business Logic

Summary

The contract is presented as decentralized and secure. However, it has certain features that contradict this claim, including upgradability and the presence of a trusted owner (admin) with special privileges

Vulnerability Details

The contract is described as decentralized and with robust security even though the contracts are upgradable and there is a trusted owner (admin) with special privileges. The presence of these features introduces potential centralization and security risks. The upgradability allows the contract to be altered after deployment. These aspects can undermine the decentralization and security claims making the contract contradict the promised.

Tools Used

Maniual review.

Recommendations

  1. Remove Upgradability: Consider deploying a non-upgradable version of the contract to eliminate the risk of post-deployment alterations.

  2. Implement Multi-Signature Controls: If upgradability is necessary, implement multi-signature controls for the admin functions to reduce the risk of a single point of failure.

  3. Decentralize Admin Privileges: Distribute admin privileges among multiple trusted parties or eliminate them altogether to enhance decentralization.

  4. Increase Transparency: Clearly communicate the existence of upgradability and admin controls to users, so they are aware of the potential risks involved.

Updates

Lead Judging Commences

0xnevi Lead Judge about 1 year ago
Submission Judgement Published
Invalidated
Reason: Known issue
Assigned finding tags:

[invalid] finding-Admin-Errors-Malicious

The following issues and its duplicates are invalid as admin errors/input validation/malicious intents are1 generally considered invalid based on [codehawks guidelines](https://docs.codehawks.com/hawks-auditors/how-to-determine-a-finding-validity#findings-that-may-be-invalid). If they deploy/set inputs of the contracts appropriately, there will be no issue. Additionally admins are trusted as noted in READ.ME they can break certain assumption of the code based on their actions, and

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