The buyOrder()function in the Tokendivider.sol smart contract is vulnerable to a reentrancy attack. An attacker can exploit the function's external calls (Ether and ERC20 token transfers) to re-enter the function and manipulate its behavior, potentially draining funds or disrupting the contract's logic.
The BuyOrder function performs external calls before updating the contract's state. This allows an attacker to re-enter the function and perform malicious actions before the contract updates its state.
Attack can take place like:
A malicious contract places a sell order.
The attacker calls buyOrder and triggers a reentrant call during the Ether transfer to their address.
The contract’s state (e.g., balances or sell orders) has not yet been updated, enabling the attacker to manipulate the same or other sell orders.
Funds Theft: The attacker can repeatedly trigger reentrant calls to drain Ether or ERC20 tokens by exploiting the lack of state updates before external calls.
Manual Code Review: Analyzed the order of operations and identified the improper placement of state updates after external calls.
Foundry : Useful for fuzz testing and validating reentrancy scenarios.
"Adopt the Check-Effects-Interactions Pattern" to ensure all state updates occur before any external interactions.
"Use OpenZeppelin's ReentrancyGuard" to add the nonReentrant modifier to the buyOrder() function to prevent reentrant calls.
"Safe Ether Transfers" to use low-level call instead of transfer or send for Ether transfers and handle reentrancy risks explicitly.
Integrate OpenZeppelin's ReentrancyGuard:
This prevents reentrant calls by ensuring a single execution at a time.
Add the nonReentrant modifier to the buyOrder() function.
Update State Before External Calls:
Move balance updates and sell order modifications before making external calls.
This ensures the contract is in a safe state before any potential reentrant attack.
Perform External Calls After Updates:
Ether transfers callare performed after all state updates.
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