Core Contracts

Regnum Aurum Acquisition Corp
HardhatReal World AssetsNFT
77,280 USDC
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Submission Details
Severity: medium
Valid

In RToken Contract, the mint and burn functions return incorrect values.

01. Relevant GitHub Links

02. Summary

The mint and burn functions of RToken Contract are returning incorrect values.

03. Vulnerability Details

The code below is the RToken::mint function.

function mint(
address caller,
address onBehalfOf,
uint256 amountToMint,
uint256 index
) external override onlyReservePool returns (bool, uint256, uint256, uint256) {
if (amountToMint == 0) {
return (false, 0, 0, 0);
}
uint256 amountScaled = amountToMint.rayDiv(index);
if (amountScaled == 0) revert InvalidAmount();
uint256 scaledBalance = balanceOf(onBehalfOf);
bool isFirstMint = scaledBalance == 0;
uint256 balanceIncrease = 0;
if (_userState[onBehalfOf].index != 0 && _userState[onBehalfOf].index < index) {
balanceIncrease = scaledBalance.rayMul(index) - scaledBalance.rayMul(_userState[onBehalfOf].index);
}
_userState[onBehalfOf].index = index.toUint128();
_mint(onBehalfOf, amountToMint.toUint128());
emit Mint(caller, onBehalfOf, amountToMint, index);
@> return (isFirstMint, amountToMint, totalSupply(), amountScaled);
}

The description of the return value says that the second argument should be the amount of scaled tokens and the fourth argument should be the amount of underlying tokens minted, but it actually returns the opposite.

* @return A tuple containing:
* - bool: True if this is the first mint for the recipient, false otherwise
* - uint256: The amount of scaled tokens minted
* - uint256: The new total supply after minting
* - uint256: The amount of underlying tokens minted
*/

A similar problem occurs with the RToken::burn function.

function burn(
address from,
address receiverOfUnderlying,
uint256 amount,
uint256 index
) external override onlyReservePool returns (uint256, uint256, uint256) {
if (amount == 0) {
return (0, totalSupply(), 0);
}
uint256 userBalance = balanceOf(from);
_userState[from].index = index.toUint128();
if(amount > userBalance){
amount = userBalance;
}
uint256 amountScaled = amount.rayMul(index);
_userState[from].index = index.toUint128();
_burn(from, amount.toUint128());
if (receiverOfUnderlying != address(this)) {
IERC20(_assetAddress).safeTransfer(receiverOfUnderlying, amount);
}
emit Burn(from, receiverOfUnderlying, amount, index);
@> return (amount, totalSupply(), amount);
}

The description of the return value says that the first argument should be the amount of scaled tokens burned and the third argument should be the amount of underlying asset transferred, but in reality, they are both returning the same amount.

* @return A tuple containing:
* - uint256: The amount of scaled tokens burned
* - uint256: The new total supply after burning
* - uint256: The amount of underlying asset transferred
*/

04. Impact

  • Incorrectly returned values can cause unexpected problems when used in other contracts.

05. Tools Used

Manual Code Review and Foundry

06. Recommended Mitigation

function mint(
address caller,
address onBehalfOf,
uint256 amountToMint,
uint256 index
) external override onlyReservePool returns (bool, uint256, uint256, uint256) {
if (amountToMint == 0) {
return (false, 0, 0, 0);
}
...
- return (isFirstMint, amountToMint, totalSupply(), amountScaled);
+ return (isFirstMint, amountScaled, totalSupply(), amountToMint);
}
function burn(
address from,
address receiverOfUnderlying,
uint256 amount,
uint256 index
) external override onlyReservePool returns (uint256, uint256, uint256) {
if (amount == 0) {
return (0, totalSupply(), 0);
}
uint256 userBalance = balanceOf(from);
_userState[from].index = index.toUint128();
if(amount > userBalance){
amount = userBalance;
}
uint256 amountScaled = amount.rayMul(index);
_userState[from].index = index.toUint128();
_burn(from, amount.toUint128());
if (receiverOfUnderlying != address(this)) {
IERC20(_assetAddress).safeTransfer(receiverOfUnderlying, amount);
}
emit Burn(from, receiverOfUnderlying, amount, index);
- return (amount, totalSupply(), amount);
+ return (amountScaled, totalSupply(), amount);
}
Updates

Lead Judging Commences

inallhonesty Lead Judge 4 months ago
Submission Judgement Published
Validated
Assigned finding tags:

RToken::burn returns incorrect underlying asset amount (amount instead of amountScaled), leading to wrong interest rate calculations

inallhonesty Lead Judge 4 months ago
Submission Judgement Published
Validated
Assigned finding tags:

RToken::burn returns incorrect underlying asset amount (amount instead of amountScaled), leading to wrong interest rate calculations

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