Liquidity Management
Gamma
DeFiFoundry
50,000 USDC
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Submission Details
Severity: low
Invalid

Nonreentrant modifier can prevent a protocol design call from `_withdraw` to `runNextAction`

hajime

Summary

A call to runNextAction() from _withdraw will revert.

  • Initial call to runNextAction() (with nonReentrant modifier)

  • Inside runNextAction() , when _nextAction.selector == NextActionSelector.WITHDRAW_ACTION

  • Calls _withdraw()

  • Inside _withdraw() , when _isLongOneLeverage(beenLong) is true

Vulnerability Details

When curPositionKey != bytes32(0) NextActionSelector set in WITHDRAW_ACTION --> then called runNextAction() in it the body of the condition else if (_nextAction.selector == NextActionSelector.WITHDRAW_ACTION), --> where it's called _withdraw()--> this function has a condition else if (_isLongOneLeverage(beenLong))in which NextActionSelector is set toSWAP_ACTION. It turns out that runNextAction() will be called again from _withdraw()However, in runNextAction()there is a nonReentrant modifier that prevents the function from being called again.

} else if (_nextAction.selector == NextActionSelector.WITHDRAW_ACTION) {
// swap indexToken that could be generated from settle action or liquidation/ADL into collateralToken
// use only DexSwap
if (
IERC20(indexToken).balanceOf(address(this)) * prices.indexTokenPrice.min >= ONE_USD
) {
(, bytes memory data) = abi.decode(metadata[1], (PROTOCOL, bytes));
_doDexSwap(data, false);
}
uint256 depositId = flowData;
|> _withdraw(depositId, metadata[0], prices)

else if (_isLongOneLeverage(beenLong)) { // beenLong && leverage == BASIS_POINTS_DIVISOR
uint256 swapAmount = IERC20(indexToken).balanceOf(address(this)) * shares / totalShares;
|> nextAction.selector = NextActionSelector.SWAP_ACTION;
// abi.encode(swapAmount, swapDirection): if swap direction is true, swap collateralToken to indexToken
nextAction.data = abi.encode(swapAmount, false);

Impact

The challenge conceived by the design of the protocol will be returned by failure.

Tools Used

Manual

Recommendations

change the logic

Updates

Lead Judging Commences

n0kto Lead Judge 5 months ago
Submission Judgement Published
Invalidated
Reason: Incorrect statement
Assigned finding tags:

Informational or Gas

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point.

Suppositions

There is no real proof, concrete root cause, specific impact, or enough details in those submissions. Examples include: "It could happen" without specifying when, "If this impossible case happens," "Unexpected behavior," etc. Make a Proof of Concept (PoC) using external functions and realistic parameters. Do not test only the internal function where you think you found something.

n0kto Lead Judge 5 months ago
Submission Judgement Published
Invalidated
Reason: Incorrect statement
Assigned finding tags:

Informational or Gas

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point.

Suppositions

There is no real proof, concrete root cause, specific impact, or enough details in those submissions. Examples include: "It could happen" without specifying when, "If this impossible case happens," "Unexpected behavior," etc. Make a Proof of Concept (PoC) using external functions and realistic parameters. Do not test only the internal function where you think you found something.

Appeal created

hajime Submitter
5 months ago
n0kto Lead Judge
5 months ago
n0kto Lead Judge 4 months ago
Submission Judgement Published
Invalidated
Reason: Incorrect statement
Assigned finding tags:

Informational or Gas

Please read the CodeHawks documentation to know which submissions are valid. If you disagree, provide a coded PoC and explain the real likelihood and the detailed impact on the mainnet without any supposition (if, it could, etc) to prove your point.

Suppositions

There is no real proof, concrete root cause, specific impact, or enough details in those submissions. Examples include: "It could happen" without specifying when, "If this impossible case happens," "Unexpected behavior," etc. Make a Proof of Concept (PoC) using external functions and realistic parameters. Do not test only the internal function where you think you found something.

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