Liquidity Management

Summary

The _mint function contains a division by zero vulnerability that can result in unfair share distributions.

Vulnerability Details

Location

_mint function

Issue

The function calculates _shares using the following logic:

The problem occurs when totalAmountBefore == 0, where it is forcefully set to 1. This prevents a division-by-zero error but leads to incorrect share calculations.

Impact

• Unfair Share Distribution: The use of totalAmountBefore = 1 can cause inflated or incorrect share allocation, leading to some depositors getting an unfair advantage.

• Potential Exploitation: A user could deposit when totalAmountBefore == 0 to receive disproportionate shares, diluting existing holders.

• Incorrect Accounting: The contract's share issuance mechanism becomes unreliable, possibly affecting future operations.

Tools Used

• Manual code review

• Static analysis

Recommendations

Instead of setting totalAmountBefore = 1, implement a proper fix:

1. Ensure Proper Initialization

   • Validate totalAmountBefore before performing the division.

   • Check if totalAmountBefore == 0 and handle it gracefully instead of assigning 1.

2. Revert Instead of Hardcoding a Value

   require(totalAmountBefore > 0, "Invalid total amount before minting shares");

   This prevents transactions from proceeding under invalid conditions.