HardhatDeFi
15,000 USDC
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Submission Details
Severity: medium
Valid

Loss of funds due to missing functionality to claim Aave rewards

Summary

Protocol loses out on Aave incentives as there is no mechanism to claim these rewards.

Impact

Loss of funds:
Incentive tokens (e.g., AAVE, stkAAVE) earned by the supplied assets will be lost.

Impact: High (losing out on tokens which could have significant value).
Likelihood: High (rewards always accumulate for supplied assets).

Vulnerability Details

Aave's RewardsController handles incentive distributions,
like liquidity mining rewards in AAVE or other tokens.
When users supply assets, they earn these rewards over time.

The AaveDIVAWrapperCore contract has a claimYield function
to withdraw the supplied collataral + interest earned thru aTokens (e.g., aUSDC)

However
Reward Tokens (e.g., AAVE or other tokens) earned as added incentives
must be explicitly claimed via RewardsController thru the claimRewards() function.

Refer Aave docs :
https://aave.com/docs/primitives/incentives

https://github.com/aave/aave-v3-periphery/blob/master/contracts/rewards/RewardsController.sol#L114-L122

function claimRewards( address[] calldata assets,
uint256 amount,
address to,
address reward )
external override returns (uint256);
require(to != address(0), 'INVALID_TO_ADDRESS');
return _claimRewards(assets, amount, msg.sender, msg.sender, to, reward);
}



Since the AaveDIVAWrapperCore contract doesn't currently have a mechanism to claim them,
these rewards will remain stuck in RewardsController, unclaimed.

Tools Used

Manual Review

Recommendations

Consider adding a separate function to claim Rewards from Aave RewardsController

Updates

Lead Judging Commences

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

Appeal created

0xarav Submitter
9 months ago
0xarav Submitter
9 months ago
0xarav Submitter
9 months ago
0xarav Submitter
9 months ago
bube Lead Judge
9 months ago
bube Lead Judge 9 months ago
Submission Judgement Published
Validated
Assigned finding tags:

Missing functionality for Aave incentives

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