Storage Proofs

Summary

Vulnerability Details

The _smoothed_price function approximates price updates using a linear model instead of an ideal exponential formula. It calculates the maximum allowable price change (max_change) using integer division:

This logic determines whether to adjust the price by max_change or allow the raw price. Because max_change is already rounded down, the function may reject larger updates that would have been valid if max_change were properly rounded up. This leads to delayed price adjustments, especially in fast-moving markets.

Impact

Since the price update mechanism already relies on a linear approximation instead of the ideal exponential formula, rounding max_change down further compounds approximation errors, potentially causing price updates to lag behind actual changes. This could result in slower price adjustments, reducing responsiveness to market movements and impacting integrations that depend on accurate pricing.

Tools Used

Manual Review

Recommendations

Ensure that the max_change is rounded up rather than down when used to calculate the price movements.