Alchemix Transmuter

Description

The StrategyOp contract inherits from BaseStrategy, which includes an optional _emergencyWithdraw function intended for situations where the strategy needs to quickly withdraw funds from the yield source. This function is currently commented out and not implemented in the StrategyOp contract.

By not implementing this function, the strategy lacks the ability to rapidly withdraw funds in case of emergencies, such as a vulnerability in the transmuter contract or other unforeseen issues.

Impact

• Inability to Respond to Emergencies: Without an emergency withdrawal mechanism, the strategy cannot promptly react to critical situations that require immediate action.

• Potential Loss of Funds: Funds may become irrecoverable or suffer losses if the strategy cannot exit positions quickly.

• Operational Risk: The strategy exposes itself and its users to higher risk during times of instability or security threats.

Proof of Concept (PoC)

1. Scenario:

   • A critical vulnerability is discovered in the transmuter contract.

   • Immediate withdrawal of funds is necessary to prevent loss.

2. Effect:

   • The strategy lacks an implemented _emergencyWithdraw function.

   • Management cannot withdraw funds from the transmuter promptly.

3. Consequence:

   • Funds remain locked in the vulnerable contract.

   • Potential loss of funds or inability to prevent exploitation.

Recommendations

• Implement Emergency Withdrawal Functionality:
  Provide a robust implementation of the _emergencyWithdraw function to enable management to withdraw funds rapidly when necessary.

  function _emergencyWithdraw(uint256 _amount) internal override {

  uint256 totalAvailable = transmuter.getUnexchangedBalance(address(this));

  uint256 amountToWithdraw = _amount > totalAvailable ? totalAvailable : _amount;

  if (amountToWithdraw > 0) {

  transmuter.withdraw(amountToWithdraw, address(this));

  }

  }