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

Swap fee is initialized wrongly in fee collector

vs_

Summary

Wrong basis points are set for swap fee while initializing.

Vulnerability Details

Following is intialize fee types function

function _initializeFeeTypes() internal {
// Protocol Fees: 80% to veRAAC holders, 20% to treasury
feeTypes[0] = FeeType({
veRAACShare: 8000, // 80%
burnShare: 0,
repairShare: 0,
treasuryShare: 2000 // 20%
});
// Lending Fees: Interest income distribution
feeTypes[1] = FeeType({
veRAACShare: 7000, // 70%
burnShare: 0,
repairShare: 0,
treasuryShare: 3000 // 30%
});
// Performance Fees: 20% from yield products
feeTypes[2] = FeeType({
veRAACShare: 6000, // 60%
burnShare: 0,
repairShare: 0,
treasuryShare: 4000 // 40%
});
// Insurance Fees: 3% from NFT loans
feeTypes[3] = FeeType({
veRAACShare: 5000, // 50%
burnShare: 0,
repairShare: 2000, // 20%
treasuryShare: 3000 // 30%
});
// Mint/Redeem Fees
feeTypes[4] = FeeType({
veRAACShare: 6000, // 60%
burnShare: 0,
repairShare: 2000, // 20%
treasuryShare: 2000 // 20%
});
// Vault Fees
feeTypes[5] = FeeType({
veRAACShare: 7000, // 70%
burnShare: 0,
repairShare: 0,
treasuryShare: 3000 // 30%
});
// Buy/Sell Swap Tax (2% total)
feeTypes[6] = FeeType({
veRAACShare: 500, // 0.5%
burnShare: 500, // 0.5%
repairShare: 1000, // 1.0%
treasuryShare: 0
});
// NFT Royalty Fees (2% total)
feeTypes[7] = FeeType({
veRAACShare: 500, // 0.5%
burnShare: 0,
repairShare: 1000, // 1.0%
treasuryShare: 500 // 0.5%
});
​
}

As can be seen that it is written that swap tax is 2% total but when setting basis points for different shares it sets them wrongly for example veRAACShare is set wrongly to 500 basis points which corresponds to 5% and not 0.5% rest values are also set wrongly.

Also these values cannot be set to 2% total because in update fee type it doesn't allow 2% total shares because 2% will not be equal to BASIS_POINTS thus the if conditon will revert.

function updateFeeType(uint8 feeType, FeeType calldata newFee) external override {
if (!hasRole(FEE_MANAGER_ROLE, msg.sender)) revert UnauthorizedCaller();
if (feeType > 7) revert InvalidFeeType();
// Validate fee shares total to 100%
if (newFee.veRAACShare + newFee.burnShare + newFee.repairShare + newFee.treasuryShare != BASIS_POINTS) {
revert InvalidDistributionParams();
}
feeTypes[feeType] = newFee;
emit FeeTypeUpdated(feeType, newFee);
}
​

Impact

Wrong swap rate used.

Tools Used

Manual Review

Recommendations

Set the correct basis points for each share in swap fee types struct.

Updates

Lead Judging Commences

inallhonesty Lead Judge 6 months ago
Submission Judgement Published
Validated
Assigned finding tags:

Fee shares for fee type 6 and 7 inside FeeCollector do not total up to the expected 10000 basis points, this leads to update problems, moreover they are 10x the specifications

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