Part 2
Zaros
PerpetualsDEXFoundrySolidity
70,000 USDC
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Submission Details
Severity: low
Invalid

Missing Support for 0.01% Fee Tier in `UniswapV3Adapter` Prevents Access to Most Efficient Stablecoin Pools

0xshoonya

Summary

The UniswapV3Adapter.sol contract, which handles Uniswap V3 interactions for the Zaros protocol, does not support the 0.01% (100 BPS) fee tier. This fee tier, introduced by Uniswap V3, is specifically designed for stable pairs and highly liquid pools. The limitation prevents the protocol from accessing the most efficient and liquid pools for stablecoin swaps, potentially leading to suboptimal execution and higher costs.

Vulnerability Details

The setPoolFee() function in UniswapV3Adapter.sol enforces a strict validation that only allows three fee tiers:

function setPoolFee(uint24 newFee) public onlyOwner {
// revert if the new fee is not 500, 3000 or 10_000
if (newFee != 500 && newFee != 3000 && newFee != 10_000) revert Errors.InvalidPoolFee();
feeBps = newFee;
emit LogSetPoolFee(newFee);
}

This implementation misses the 100 BPS (0.01%) fee tier, which is crucial for:

  • Stablecoin pairs (USDC/USDT, USDC/DAI)

  • Highly liquid pools with minimal price impact

The adapter is used throughout the protocol's market-making engine for executing swaps, particularly in:

  • Market fee collection and distribution

  • Credit delegation operations

  • Vault router operations

Impact

The protocol cannot interact with pools using the 0.01% fee tier. This means potentially missing out on the most efficient trading routes for stablecoin pairs

Tools Used

Manual Review

Recommendations

The setPoolFee() function should be updated to include support for the 100 BPS fee tier:

if (newFee != 100 && newFee != 500 && newFee != 3000 && newFee != 10_000) revert Errors.InvalidPoolFee();
Updates

Lead Judging Commences

inallhonesty Lead Judge 10 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

[INVALID] Missing Support for 0.01% Fee Tier in `UniswapV3Adapter`

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