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

Fee can be bypaassed on certain tokens

inh3l

Vulnerability Details

_transferToken charges a governance fee from the amount to withdraw. This fee can easily be bypassed with a low decimal, high cost token like wbtc.

By splitting deposits into small chunks, and subsequently withdrawing the small chunks, even when a user is in profit, the calculation (amount - depositInfo[depositId].amount) * governanceFee will in more cases be less than BASIS_POINTS_DIVISOR and due to solidity's innate rounding down of division will always evaluate 0.

function _transferToken(uint256 depositId, uint256 amount) internal {
uint256 fee;
if (amount > depositInfo[depositId].amount) {
> fee = (amount - depositInfo[depositId].amount) * governanceFee / BASIS_POINTS_DIVISOR;
if (fee > 0) {
collateralToken.safeTransfer(treasury, fee);
}
}
try collateralToken.transfer(depositInfo[depositId].recipient, amount - fee) {}
catch {
collateralToken.transfer(treasury, amount - fee);
emit TokenTranferFailed(depositInfo[depositId].recipient, amount - fee);
}
totalDepositAmount -= depositInfo[depositId].amount;
emit GovernanceFeeCollected(address(collateralToken), fee);
}

This will occur much easily with a token like WBTC which on average is very expensive and also has relatively low decimal count compared to other tokens. It's also possible with a token like USDC due to it's also low decimal count. Also, low gas costs on arbitrum and avalanche will make multiple small deposits relatively cheaper, compared to a chain like ethereum mainnet.

Recommendations

Round up fee calculations in favour of protocol.

Updates

Lead Judging Commences

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

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