Aave DIVA Wrapper

Summary and Impact

The AaveDIVAWrapper contract lacks an emergency stop(pause/unpause) mechanism to pause critical operations when vulnerabilities are detected in its integrated protocols (Aave V3 or DIVA) or its own logic. This violates the protocol’s own risk acknowledgment in the known issues section:

"Integration risk with both Aave V3 and DIVA Protocol - vulnerabilities in either protocol may affect AaveDIVAWrapper."

Impact Breakdown:

1. Unstoppable Exploits: If Aave V3 (upgradeable) introduces a breaking change or DIVA has a vulnerability.

2. Documented Risk Mitigation: The documentation explicitly warns about external integration risks but provides no operational safeguards to address them.

This directly threatens the system’s core invariant: "Assets deposited into DIVA Protocol pools generate yield safely via Aave V3."

Vulnerability Details

Exploit Walkthrough

1. Trigger: Aave V3 or DIVA suffers a critical bug.

2. Result:

   • AaveDIVAWrapper cannot pause operations leading to internal issues.

   • Protocol reserves and user funds are vulnerable.

Tools Used

• Manual Review

Recommendations

1. Immediate Mitigation:
   Integrate OpenZeppelin’s Pausable and guard all state-changing functions

2. Governance Enhancement:

   • Restrict emergencyPause to a multisig or DAO to prevent centralized abuse.