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

Missing slippage protection in `PerpetualVault::deposit` leads to Front-Running

hi_there

Summary

The deposit function in the PerpetualVault contract lacks slippage protection, allowing deposits to be executed at unfavorable prices. This exposes users to price manipulation and front-running attacks, where an attacker can exploit price discrepancies to cause users to receive fewer shares than expected.

Vulnerability Details

  • The deposit() function in the PerpetualVault contract lacks slippage protection when minting shares, making it vulnerable to MEV attacks and front-running. Users have no way to specify a minimum number of shares they expect to receive for their deposit, which could result in significant value loss due to price manipulation.

Link to affected code

Impact

  • Users receive fewer shares for their deposits, leading to financial loss.

  • MEV bots can front-run deposit transactions to extract value

Tools Used

Manual Review

Recommendations

Add slippage protection parameters to the deposit function:

function deposit(uint256 amount, uint256 minSharesToReceive) external nonReentrant payable

Update DepositInfo struct to include slippage parameters:

struct DepositInfo {
uint256 amount;
uint256 shares;
address owner;
uint256 executionFee;
uint256 timestamp;
address recipient;
uint256 minSharesToReceive; // Add this field
}

Implement slippage checks in both immediate and delayed minting paths:

if (positionIsClosed) {
MarketPrices memory prices;
+ uint256 sharesToMint = _calculateShares(amount, prices); // add a function to calculate, expected shares
+ if (sharesToMint < minSharesToReceive) {
revert Error.SlippageExceeded();
}
_mint(counter, amount, false, prices);
​
// Rest of the function...
}
Updates

Lead Judging Commences

n0kto Lead Judge 9 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
Assigned finding tags:

invalid_shares_slippage

Shares represent a part of the vault. Even if someone performs a frontrun or sandwich attack, you will still have the corresponding amount of shares representing your deposit. A user could add liquidity two days later, and you would still have the same amount of shares.

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