Core Contracts

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

`_depositIntoVault` would always revert

contract attempts to deposit excess tokens into curveVault during rebalancing.

https://github.com/Cyfrin/2025-02-raac/blob/main/contracts/core/pools/LendingPool/LendingPool.sol#L800

function _rebalanceLiquidity() internal {
// if curve vault is not set, do nothing
if (address(curveVault) == address(0)) {
return;
}
uint256 totalDeposits = reserve.totalLiquidity; // Total liquidity in the system
uint256 desiredBuffer = totalDeposits.percentMul(liquidityBufferRatio);
uint256 currentBuffer = IERC20(reserve.reserveAssetAddress).balanceOf(reserve.reserveRTokenAddress);
if (currentBuffer > desiredBuffer) {
uint256 excess = currentBuffer - desiredBuffer;
// Deposit excess into the Curve vault
@> _depositIntoVault(excess);
} else if (currentBuffer < desiredBuffer) {
uint256 shortage = desiredBuffer - currentBuffer;
// Withdraw shortage from the Curve vault
_withdrawFromVault(shortage);
}

The issue is that the excess asset to be deposited is not owned by the contract but by reserve.reserveRTokenAddress so attempt to deposit excess would always fail as contract does not have the funds.

Impact

_depositIntoVault would always revert leading to DoS of all rebalance operation.

Recommendation

function _depositIntoVault(uint256 amount) internal {
+ IRToken(reserve.reserveRTokenAddress).transferAsset(address(this), amount);
IERC20(reserve.reserveAssetAddress).approve(address(curveVault), amount);
curveVault.deposit(amount, address(this));
totalVaultDeposits += amount;
}
Updates

Lead Judging Commences

inallhonesty Lead Judge 7 months ago
Submission Judgement Published
Validated
Assigned finding tags:

LendingPool::_depositIntoVault and _withdrawFromVault don't transfer tokens between RToken and LendingPool, breaking Curve vault interactions

inallhonesty Lead Judge 7 months ago
Submission Judgement Published
Validated
Assigned finding tags:

LendingPool::_depositIntoVault and _withdrawFromVault don't transfer tokens between RToken and LendingPool, breaking Curve vault interactions

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