Tadle

Tadle
DeFi
30,000 USDC
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Submission Details
Severity: high
Valid

Flawed approval mechanism leads to failed transfers and potential fund lock

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Lead Judging Commences

0xnevi Lead Judge 7 months ago
Submission Judgement Published
Validated
Assigned finding tags:

finding-CapitalPool-approve-missing-access-control

This is at most low severity, even though giving max approvals shouldn't be permisionless, the respective tokenManager address is retrieved from the TadleFactory contract whereby the trusted guardian role is responsible for deploying such contracts as seen [here](https://github.com/Cyfrin/2024-08-tadle/blob/04fd8634701697184a3f3a5558b41c109866e5f8/src/factory/TadleFactory.sol#L68). Since the user still has to go through the PreMarkets/DeliveryPlace contracts to perform market actions, this max approval cannot be exploited.

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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