Summary

The TokenDivider contract inherits Ownable, granting the owner privileged rights to perform admin tasks. This introduces a centralization risk, as the owner could perform malicious updates or drain funds. Funds are indirectly at risk if the owner acts maliciously or their keys are compromised.

Vulnerability Details

The TokenDivider contract uses the Ownable pattern, which grants the contract owner significant control over the protocol. The owner can perform privileged actions, such as updating critical parameters or withdrawing funds. If the owner's private key is compromised or the owner acts maliciously, they could exploit these privileges to manipulate the contract or drain funds.

Impact

Medium Impact: Funds are indirectly at risk if the owner acts maliciously or their keys are compromised.

Centralization Risk: The protocol relies on a single trusted entity, which undermines decentralization and trustlessness.

Potential Exploitation: The owner could manipulate the contract state or drain funds, leading to financial losses for users.

Tools Used

Aderyn, Foundry

Recommendations

To reduce centralization risk, implement a multi-signature mechanism or timelock for critical admin functions. For example:

Multi-Signature Wallet: Require multiple signatures to approve privileged actions.

Timelock: Introduce a delay for critical actions, allowing users to react if the owner behaves maliciously.

Example Implementation: