Core Contracts

Description

As there are no fine charging mechanisms implemented on emergencyWithdraw(), anybody can easily vote with infinite voting powers either in favour of any proposal or against any proposal.

Imagine this Attack Scenario:

• assume emergency withdrawals are enabled in veRAACToken and there is some cruicial proposal proposalX in Governance that is needed to be executed.

• now the attacker wants to vote against it with infinite power

• attacker locks in veRAACToken with x amounts for getting some voting powers

• attacker casts vote against proposalX via Governance.castVote()

• attacker calls veRAACToken.emergencyWithdraw() and gets back his underlying raac tokens.

• attacker transfers raac tokens to his another addressB

• From addressB attacker repeats same previous 4 steps, locks, votes, emergencyWithdraws and transfers underlying raac tokens to addressC

• The attacker repeats the same attack flow with as many addresses as possible until he votes againts proposalX with humongous amounts

• The result, criticaly needed proposal can never be executed, not only that attacker can vote in favour of malicious proposals with his infinte powers too.

Recommendations

make sure to take a little fine on every emergencyWithdraw() like flat 10% or dynamic % that decrease towards the expected locked duration