HardhatDeFi
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Submission Details
Severity: medium
Invalid

Insufficient Handling of Asset Reserves in `getReserveData`

Summary

The getReserveData function in IAave.sol contract provides access to critical reserve information, but it exposes the internal state without any restrictions. While this is mostly for transparency, an attacker could use this information to identify potential attack vectors or manipulate their strategy.

Vulnerability Details

  • The function getReserveData exposes detailed information about the reserve, such as liquidity index, borrow rate, and various other parameters. While this is mostly used for monitoring, an attacker could use this data to craft targeted attacks (e.g., arbitrage strategies).

  • Lack of data protection or conditional access could be problematic in the future.

Impact

  • While the current risk of exploitation is low, exposing this data could give an attacker more information to manipulate their strategy, leading to financial loss in the future or enabling sophisticated arbitrage.

Proof of Concept for Insufficient Handling of Asset Reserves in getReserveData

Overview:

The getReserveData function returns the reserve data, but it doesn't include sufficient validation or handling of edge cases related to the asset's reserve status, such as uninitialized or inactive reserves. This could lead to situations where a user or other contract receives incorrect or incomplete information about a reserve's status, leading to erroneous behavior in the protocol.

Actors:

  • Attacker: An attacker who might provide incorrect asset data or exploit the lack of proper validation to gain incorrect insights into reserve states.

  • Victim: The protocol users who rely on correct reserve data for making decisions.

  • Protocol: The Aave protocol, which returns the reserve data without checking or handling inactive or uninitialized reserves properly.

Working Test Case:

// Solidity code demonstrating insufficient handling of asset reserves
contract MaliciousContract {
IAave aave;
constructor(address _aave) {
aave = IAave(_aave);
}
// Malicious attacker attempts to interact with `getReserveData`
function manipulateReserveData(address asset) external view returns (IAave.ReserveDataLegacy memory reserveData) {
// The contract calls `getReserveData` for a specific asset
reserveData = aave.getReserveData(asset);
// Step 1: Attacker attempts to interact with an asset that could have an uninitialized or invalid reserve
// For example, we provide an asset with an uninitialized reserve data structure or an inactive reserve.
// Simulate edge case handling failure by assuming that `getReserveData` returns
// an unexpected state for an uninitialized or inactive asset.
return reserveData; // Return data that could be invalid or incomplete
}
// Step 2: Attacker attempts to use reserve data for malicious purposes
function exploitReserveData(address asset) external view returns (uint256) {
IAave.ReserveDataLegacy memory reserveData = manipulateReserveData(asset);
// Exploit scenario: The attacker could use incomplete or invalid reserve data
// to manipulate liquidity checks or other operations that rely on accurate reserve data
if (reserveData.configuration.data == 0) {
// Malicious logic could exploit the incorrect reserve data.
// For instance, if the reserve configuration is uninitialized or invalid,
// the attacker might be able to bypass liquidity checks.
return 0; // Malicious attack outcome (bypassing checks or gaining improper advantage)
}
// Otherwise, the normal logic continues...
return reserveData.liquidityIndex; // Return some valid liquidity data
}
}
// Explanation:
// 1. The attacker deploys a contract that interacts with the Aave `getReserveData` function.
// 2. The contract checks an asset's reserve data without proper validation.
// 3. If the reserve data for the asset is uninitialized or inactive, the function may return incorrect or incomplete data.
// 4. The attacker could exploit this invalid reserve data to bypass reserve-related checks, potentially manipulating liquidity checks or other functions relying on correct reserve data.

Outcome & Implications:

  • Outcome: If the attacker interacts with an asset that has invalid, uninitialized, or inactive reserve data, the getReserveData function might return incomplete or incorrect information. This could lead to the attacker bypassing checks, manipulating reserve-related operations, or causing unexpected behaviors in the protocol.

  • Implications: This vulnerability could undermine the protocol’s integrity by allowing attackers to exploit faulty reserve data. Users might unknowingly interact with invalid reserves or withdraw more than allowed. Inaccurate data could also affect decision-making in decentralized finance (DeFi) protocols, affecting liquidity and stability.

Tools Used

Manual code review

Recommendations

  • Reserve Initialization Check: Ensure that the reserve data returned by getReserveData is validated to check that the reserve has been initialized and is active. If the reserve is inactive or uninitialized, it should return an error or a default value indicating invalid state.

    Example validation:

    function getReserveData(address asset) external view override returns (ReserveDataLegacy memory) {
    ReserveDataLegacy memory reserve = reserves[asset];
    require(reserve.configuration.data != 0, "Reserve not initialized");
    return reserve;
    }
  • Inactive Reserve Handling: Add proper checks to handle inactive reserves by setting a flag or status indicator in the ReserveConfigurationMap. If a reserve is inactive, the function should return an error or a status that indicates the reserve cannot be interacted with.

    Example:

    // In the `ReserveConfigurationMap` struct, add a status flag for reserve activity
    uint256 public reserveStatus; // 0 = inactive, 1 = active
    function getReserveData(address asset) external view override returns (ReserveDataLegacy memory) {
    ReserveDataLegacy memory reserve = reserves[asset];
    require(reserve.reserveStatus == 1, "Reserve is inactive");
    return reserve;
    }
  • Edge Case Handling: Ensure the getReserveData function includes handling for edge cases, such as uninitialized reserves, reserves with invalid data, or incomplete data states.

  • Logging and Monitoring: Add event logging to track any invalid interactions with reserve data, so that protocol operators can identify potential issues and respond quickly.

Updates

Lead Judging Commences

bube Lead Judge 9 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity

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