Storage Proofs

Summary

The identified vulnerability is a Data Manipulation & Precision Exploit concerning how scrvUSD vault parameters are fetched from Ethereum and provided on other chains. This process is crucial for computing growth rates securely. However, flaws in data transmission, validation, or consistency assumptions could allow attackers to inject manipulated data or disrupt calculations, causing financial loss or incorrect stableswap-ng pool rates (e.g., USDC/scrvUSD, FRAX/scrvUSD).

Vulnerability Details

The vulnerability lies in the process of fetching scrvUSD vault parameters and the communication between the oracle and receiving chains during blockhash or stateroot updates. Attackers could exploit this by deploying malicious smart contracts that intercept, alter, or simulate data before it reaches its intended destination.

Steps to Reproduce (Proof of Concept):

1. Identify the mechanism used for fetching scrvUSD vault parameters from Ethereum.

2. Analyze the communication process between the oracle and receiving chains during updates.

3. Deploy a malicious smart contract to intercept, alter, or simulate data.

4. Demonstrate a scenario where manipulated data affects growth rate calculations or stableswap-ng pool rates, leading to incorrect financial results.

   Example Code Snippet (Hypothetical):

   // Example demonstrating potential manipulation of oracle data

   pragma solidity ^0.8.0;

   ​

   contract ManipulateOracle {

   address public oracle;

   ​

   constructor(address _oracle) {

   oracle = _oracle;

   }

   ​

   function manipulateData(uint256 fakeValue) external {

   (bool success,) = oracle.call(abi.encodeWithSignature("updateVaultParameters(uint256)", fakeValue));

   require(success, "Data manipulation failed");

   }

   }
   ​

Severity

The severity of this vulnerability is categorized as High. The potential manipulation of data during the fetching of scrvUSD vault parameters from Ethereum and its provision to other chains can lead to significant financial losses, incorrect stableswap-ng pool rates, and exploitation for unfair financial advantages. Moreover, it compromises the integrity of the cross-chain oracle mechanism, which is critical to the functioning of the system.

Impact

• Manipulated growth rate calculations.

• Incorrect stableswap-ng pool rates for assets like USDC/scrvUSD, FRAX/scrvUSD, etc.

• Financial loss for liquidity providers and protocols.

• Potential exploitation for unfair financial advantage.

• Damage to the integrity of the cross-chain oracle mechanism.

Tools Used

• Code Analysis

• Smart Contract Simulation

• Vulnerability Testing Techniques

Reconmendation

• Implement robust validation checks during data transmission.

• Use cryptographic signatures to verify data authenticity.

• Utilize decentralized or multi-source data validation.

• Regularly audit the processes and code for fetching and transmitting data.

Mitigation Measures

• Introduce multi-source data verification where data from the prover is cross-validated with other trusted oracles.

• Use non-manipulable timestamps or consensus mechanisms to ensure data integrity.

• Apply cryptographic proofs that cannot be tampered with when data is fetched and transmitted between chains.

• Enhance monitoring and alert systems to detect suspicious activity and mitigate potential attacks in real-time.

Severity Level

Critical - The vulnerability can cause severe financial damage and compromise the reliability of the system.