Core Contracts

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

If user take advantage of tokenising same property multiple times it will lead to protocol insolvency

Summary

Across protocol there is no check prevent tokenising same property multiple times which will lead to drastical unintended "leverage" for user he could use to take unfairly big loans

Vulnerability Details

Because the value of NFT pegged to real-estate property it could increase or decreased base on market and physical condition of that property.

Consider the following example :

User mint token representing some real-estate object at cost 100k$ 10 times ( so now user have 10 NFT)

User invest 500k$ to the real-estate and build, let's say, mansion there

Now his real estate cost 600k$ and that exact price chainlink will return as a price of NFT

Because user minted 10 NFT representing his real-estate the value of those NFT will be returned as 5m$ from chainlink

User spend total 1,6m$ (10 nft + rwa), but now he is able to took loan against this 5m$ which he will be able to return to take advantage of his "leverage"

Impact

Protocol won't be solvent to cover such loses in case tokenising same property

Tools Used

Manual review

Recommendations

build check against multiple tokenisation ( it might be oracle's value about property owner )

Updates

Lead Judging Commences

inallhonesty Lead Judge 3 months ago
Submission Judgement Published
Invalidated
Reason: Design choice

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