Santa's List

AI First Flight #3
Beginner FriendlyFoundry
EXP
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Submission Details
Severity: medium
Valid

Token Burn Amount Mismatch with Intended Cost

Root + Impact

Description

  • The contract defines `PURCHASED_PRESENT_COST` as `2e18` tokens, but the `burn` function in `SantaToken` always burns exactly `1e18` tokens. This means users only pay half the intended cost for buying presents.

    ### Root + Impact

    **Description:**

    * The normal behavior is that buying a present should cost `PURCHASED_PRESENT_COST` (2e18) SantaTokens.

    * The issue is that `SantaToken.burn()` has a hardcoded amount of `1e18`, which is half of the intended cost. The `buyPresent` function calls `burn()` without specifying an amount, so users only pay 1e18 instead of 2e18.

    ```solidity

    // @> SantasList.sol:88

    uint256 public constant PURCHASED_PRESENT_COST = 2e18;

    ```

    ```solidity

    // @> SantaToken.sol:28-33

    function burn(address from) external {

    if (msg.sender != i_santasList) {

    revert SantaToken__NotSantasList();

    }

    _burn(from, 1e18); // @> Hardcoded to 1e18, not PURCHASED_PRESENT_COST

    }

    ```


Risk

Likelihood:

  • * This occurs every time `buyPresent` is called, as the burn function always uses the hardcoded value

    * The mismatch is permanent until the contract is updated

Impact:

  • * Users get NFTs for 50% discount (1e18 instead of 2e18)

    * Breaks the intended tokenomics and economic model

    * Reduces the value and scarcity of NFTs

Proof of Concept

```solidity
// User should pay 2e18 but only pays 1e18
uint256 cost = santasList.PURCHASED_PRESENT_COST(); // Returns 2e18
// But when buyPresent is called:
santasList.buyPresent(receiver);
// Only 1e18 is burned, not 2e18
```

Recommended Mitigation

```diff
- function burn(address from) external {
+ function burnFrom(address from, uint256 amount) external {
if (msg.sender != i_santasList) {
revert SantaToken__NotSantasList();
}
- _burn(from, 1e18);
+ uint256 allowed = allowance[from][msg.sender];
+ if (allowed < amount) {
+ revert InsufficientAllowance();
+ }
+ allowance[from][msg.sender] = allowed - amount;
+ _burn(from, amount);
}
```
And update `buyPresent`:
```diff
- i_santaToken.burn(presentReceiver);
+ i_santaToken.burnFrom(msg.sender, PURCHASED_PRESENT_COST);
```
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge 16 days ago
Submission Judgement Published
Validated
Assigned finding tags:

[M-01] Cost to buy NFT via SantasList::buyPresent is 2e18 SantaToken but it burns only 1e18 amount of SantaToken

## Description - The cost to buy NFT as mentioned in the docs is 2e18 via the `SantasList::buyPresent` function but in the actual implementation of buyPresent function it calls the SantaToken::burn function which doesn't take any parameter for amount and burns a fixed 1e18 amount of SantaToken, thus burning only half of the actual amount that needs to be burnt, and hence user can buy present for their friends at cheaper rates. - Along with this the user is able to buy present for themselves but the docs mentions that present can be bought only for other users. ## Vulnerability Details The vulnerability lies in the code in the function `SantasList::buyPresent` at line 173 and in `SantaToken::burn` at line 28. The function `burn` burns a fixed amount of 1e18 SantaToken whenever `buyPresent` is called but the true value of SantaToken that was expected to be burnt to mint an NFT as present is 2e18. ```cpp function buyPresent(address presentReceiver) external { @> i_santaToken.burn(presentReceiver); _mintAndIncrement(); } ``` ```cpp function burn(address from) external { if (msg.sender != i_santasList) { revert SantaToken__NotSantasList(); } @> _burn(from, 1e18); } ``` ## PoC Add the test in the file: `test/unit/SantasListTest.t.sol`. Run the test: ```cpp forge test --mt test_UsersCanBuyPresentForLessThanActualAmount ``` ```cpp function test_UsersCanBuyPresentForLessThanActualAmount() public { vm.startPrank(santa); // Santa checks user once as EXTRA_NICE santasList.checkList(user, SantasList.Status.EXTRA_NICE); // Santa checks user second time santasList.checkTwice(user, SantasList.Status.EXTRA_NICE); vm.stopPrank(); // christmas time 🌳🎁 HO-HO-HO vm.warp(santasList.CHRISTMAS_2023_BLOCK_TIME()); // user collects their present vm.prank(user); santasList.collectPresent(); // balance after collecting present uint256 userInitBalance = santaToken.balanceOf(user); // now the user holds 1e18 SantaToken assertEq(userInitBalance, 1e18); vm.prank(user); santaToken.approve(address(santasList), 1e18); vm.prank(user); // user buy present // docs mention that user should only buy present for others, but they can buy present for themselves santasList.buyPresent(user); // only 1e18 SantaToken is burnt instead of the true price (2e18) assertEq(santaToken.balanceOf(user), userInitBalance - 1e18); } ``` ## Impact - Protocol mentions that user should be able to buy NFT for 2e18 amount of SantaToken but users can buy NFT for their friends by burning only 1e18 tokens instead of 2e18, thus NFT can be bought at much cheaper rate which is half of the true amount that was expected to buy NFT. - User can buy a present for themselves but docs strictly mentions that present can be bought for someone else. ## Recommendations Include an argument inside the `SantaToken::burn` to specify the amount of token to burn and also update the `SantasList::buyPresent` function with updated parameter for `burn` function to pass correct amount of tokens to burn. - Update the `SantaToken::burn` function ```diff -function burn(address from) external { +function burn(address from, uint256 amount) external { if (msg.sender != i_santasList) { revert SantaToken__NotSantasList(); } - _burn(from, 1e18); + _burn(from, amount); } ``` - Update the `SantasList::buyPresent` function ```diff + error SantasList__ReceiverIsCaller(); function buyPresent(address presentReceiver) external { + if (msg.sender == presentReceiver) { + revert SantasList__ReceiverIsCaller(); + } - i_santaToken.burn(presentReceiver); + i_santaToken.burn(presentReceiver, PURCHASED_PRESENT_COST); _mintAndIncrement(); } ```

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