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

No check if `liquidityIndex` is 0 after computation

0xisboss

Overview

https://github.com/Cyfrin/2025-02-raac/blob/main/contracts/libraries/pools/ReserveLibrary.sol#L121
When updating reserve and interests the following function is called

function updateReserveInterests(ReserveData storage reserve,ReserveRateData storage rateData) internal {
uint256 timeDelta = block.timestamp - uint256(reserve.lastUpdateTimestamp);
if (timeDelta < 1) {
return;
}
​
uint256 oldLiquidityIndex = reserve.liquidityIndex;
if (oldLiquidityIndex < 1) revert LiquidityIndexIsZero();
​
// Update liquidity index using linear interest
reserve.liquidityIndex = calculateLiquidityIndex(
rateData.currentLiquidityRate,
timeDelta,
reserve.liquidityIndex
);
​
// Update usage index (debt index) using compounded interest
reserve.usageIndex = calculateUsageIndex(
rateData.currentUsageRate,
timeDelta,
reserve.usageIndex
);
​
// Update the last update timestamp
reserve.lastUpdateTimestamp = uint40(block.timestamp);
emit ReserveInterestsUpdated(reserve.liquidityIndex, reserve.usageIndex);
}

Looking at how liquidityIndex is calculated we have the following check to prevent further execution if the index is 0

uint256 oldLiquidityIndex = reserve.liquidityIndex;
if (oldLiquidityIndex < 1) revert LiquidityIndexIsZero();

But after the check is done there is nothing to make sure that the newLiquidity index is more than 0

function calculateLinearInterest(uint256 rate, uint256 timeDelta, uint256 lastIndex) internal pure returns (uint256) {
uint256 cumulatedInterest = rate * timeDelta;
cumulatedInterest = cumulatedInterest / SECONDS_PER_YEAR;
return WadRayMath.RAY + cumulatedInterest;
}
​
function calculateLiquidityIndex(uint256 rate, uint256 timeDelta, uint256 lastIndex) internal pure returns (uint128) {
uint256 cumulatedInterest = calculateLinearInterest(rate, timeDelta, lastIndex);
return cumulatedInterest.rayMul(lastIndex).toUint128();
}

Impact

liquidity index could have 0 as a value

Recommendation

add checks to make sure that if the computed liquidityIndex is 0 revert the transaction or else the call to this function will be DOSed forever.

Updates

Lead Judging Commences

inallhonesty Lead Judge 3 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity
inallhonesty Lead Judge 3 months ago
Submission Judgement Published
Invalidated
Reason: Non-acceptable severity

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