Summary

The update_price function is responsible for updating the token price based on supplied parameters that are verified by a prover and a verifier. However, after deployment, the initial parameters are set to very small values. When update_price is called for the first time, it calculates the token price using these initial parameters, which leads to incorrect pricing.

Vulnerability Details

At deployment, self.price_params is initialized with minimal values:

In update_price, current_price is calculated using outdated parameters before updating self.price_params:

Since the initial parameters contain small values, this results in an incorrect price calculation, inflating the first reported price.

Impact

The first call to update_price after deployment will use the initial small parameters, leading to inaccurate price updates

Tools Used

Manual Review

Recommendations

Initialize price_params with realistic values at deployment or ensure the first price update correctly accounts for external market conditions to prevent inaccurate pricee.