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Submission Details
Severity: high
Valid

Missing bursary update causes incorrect fund retention after upgrade

anchabadze

Description:

The graduateAndUpgrade function in the LevelOne contract fails to update the bursary value after making payments to teachers and the principal. According to the protocol's invariant, "remaining 60% should reflect in the bursary after upgrade," but the current implementation does not reduce the bursary amount after payments are made.

function graduateAndUpgrade(address _levelTwo, bytes memory) public onlyPrincipal {
// ...
uint256 payPerTeacher = (bursary * TEACHER_WAGE) / PRECISION;
uint256 principalPay = (bursary * PRINCIPAL_WAGE) / PRECISION;
​
_authorizeUpgrade(_levelTwo);
​
for (uint256 n = 0; n < totalTeachers; n++) {
usdc.safeTransfer(listOfTeachers[n], payPerTeacher);
}
​
usdc.safeTransfer(principal, principalPay);
​
// Missing: bursary update to reflect remaining 60%
}
​

Impact:

  • The bursary value remains unchanged after payments, violating the protocol's invariant

  • After upgrade to LevelTwo, the bursary value will be incorrectly high, showing 100% of funds instead of the expected 60%

  • This creates an accounting discrepancy between the actual token balance and the recorded bursary value

Recommended Mitigation:

Update the graduateAndUpgrade function to properly adjust the bursary

Updates

Lead Judging Commences

yeahchibyke Lead Judge 6 months ago
Submission Judgement Published
Validated
Assigned finding tags:

bursary not updated

The bursary is not updated after wages have been paid in `graduateAndUpgrade()` function

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