Thunder Loan

AI First Flight #7
Beginner FriendlyFoundryDeFiOracle
EXP
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Submission Details
Severity: high
Valid

Contract upgrade corrupts storage layout.

Root + Impact

Description

The `ThunderLoan.sol` implementation contract is meant to be upgraded to the new implementation `ThunderLoanUpgraded.sol`. The upgraded version introduces a new storage variable but does not match the storage layout of the old version, Therefore,upgrading this contract to the new version will cause storage corruption.
This is the layout of `ThunderLoan.sol`
``` solidity
mapping(IERC20 => AssetToken) public s_tokenToAssetToken;
// The fee in WEI, it should have 18 decimals. Each flash loan takes a flat fee of the token price.
uint256 private s_feePrecision;
uint256 private s_flashLoanFee; // 0.3% ETH fee
mapping(IERC20 token => bool currentlyFlashLoaning) private s_currentlyFlashLoaning;
```
`This is the layout of ThunderLoanUpgraded.sol`
```solidity
mapping(IERC20 => AssetToken) public s_tokenToAssetToken;
// The fee in WEI, it should have 18 decimals. Each flash loan takes a flat fee of the token price.
uint256 private s_flashLoanFee; // 0.3% ETH fee
@> uint256 public constant FEE_PRECISION = 1e18;
mapping(IERC20 token => bool currentlyFlashLoaning) private s_currentlyFlashLoaning;
```
The new contract makes the `FEE_PRECISION` a constant variable. that makes the variable to be stored in the contract's bytescode rather than the storage layout.
uint256 private s_flashLoanFee; // 0.3% ETH fee
Therfore, `s_feePrecision` is overriden by `s_flashLoanFee` and `s_flashLoanFee` is overriden by `s_currentlyFlashLoaning`.

Risk

Likelihood:

when the contract is upgraded.

Impact:

  • storage slot corruption

Proof of Concept

nil

Recommended Mitigation

```diff
mapping(IERC20 => AssetToken) public s_tokenToAssetToken;
+uint256 private s_feePrecision;
uint256 private s_flashLoanFee; // 0.3% ETH fee
uint256 public constant FEE_PRECISION = 1e18;
mapping(IERC20 token => bool currentlyFlashLoaning) private s_currentlyFlashLoaning;
```
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 10 hours ago
Submission Judgement Published
Validated
Assigned finding tags:

[H-01] Storage Collision during upgrade

## Description The thunderloanupgrade.sol storage layout is not compatible with the storage layout of thunderloan.sol which will cause storage collision and mismatch of variable to different data. ## Vulnerability Details Thunderloan.sol at slot 1,2 and 3 holds s_feePrecision, s_flashLoanFee and s_currentlyFlashLoaning, respectively, but the ThunderLoanUpgraded at slot 1 and 2 holds s_flashLoanFee, s_currentlyFlashLoaning respectively. the s_feePrecision from the thunderloan.sol was changed to a constant variable which will no longer be assessed from the state variable. This will cause the location at which the upgraded version will be pointing to for some significant state variables like s_flashLoanFee to be wrong because s_flashLoanFee is now pointing to the slot of the s_feePrecision in the thunderloan.sol and when this fee is used to compute the fee for flashloan it will return a fee amount greater than the intention of the developer. s_currentlyFlashLoaning might not really be affected as it is back to default when a flashloan is completed but still to be noted that the value at that slot can be cleared to be on a safer side. ## Impact 1. Fee is miscalculated for flashloan 1. users pay same amount of what they borrowed as fee ## POC 2 ``` function testFlashLoanAfterUpgrade() public setAllowedToken hasDeposits { //upgrade thunderloan upgradeThunderloan(); uint256 amountToBorrow = AMOUNT * 10; console.log("amount flashloaned", amountToBorrow); uint256 calculatedFee = thunderLoan.getCalculatedFee( tokenA, amountToBorrow ); AssetToken assetToken = thunderLoan.getAssetFromToken(tokenA); vm.startPrank(user); tokenA.mint(address(mockFlashLoanReceiver), amountToBorrow); thunderLoan.flashloan( address(mockFlashLoanReceiver), tokenA, amountToBorrow, "" ); vm.stopPrank(); console.log("feepaid", calculatedFee); assertEq(amountToBorrow, calculatedFee); } ``` Add the code above to thunderloantest.t.sol and run `forge test --mt testFlashLoanAfterUpgrade -vv` to test for the second poc ## Recommendations The team should should make sure the the fee is pointing to the correct location as intended by the developer: a suggestion recommendation is for the team to get the feeValue from the previous implementation, clear the values that will not be needed again and after upgrade reset the fee back to its previous value from the implementation. ##POC for recommendation ``` // function upgradeThunderloanFixed() internal { thunderLoanUpgraded = new ThunderLoanUpgraded(); //getting the current fee; uint fee = thunderLoan.getFee(); // clear the fee as thunderLoan.updateFlashLoanFee(0); // upgrade to the new implementation thunderLoan.upgradeTo(address(thunderLoanUpgraded)); //wrapped the abi thunderLoanUpgraded = ThunderLoanUpgraded(address(proxy)); // set the fee back to the correct value thunderLoanUpgraded.updateFlashLoanFee(fee); } function testSlotValuesFixedfterUpgrade() public setAllowedToken { AssetToken asset = thunderLoan.getAssetFromToken(tokenA); uint precision = thunderLoan.getFeePrecision(); uint fee = thunderLoan.getFee(); bool isflanshloaning = thunderLoan.isCurrentlyFlashLoaning(tokenA); /// 4 slots before upgrade console.log("????SLOTS VALUE BEFORE UPGRADE????"); console.log("slot 0 for s_tokenToAssetToken =>", address(asset)); console.log("slot 1 for s_feePrecision =>", precision); console.log("slot 2 for s_flashLoanFee =>", fee); console.log("slot 3 for s_currentlyFlashLoaning =>", isflanshloaning); //upgrade function upgradeThunderloanFixed(); //// after upgrade they are only 3 valid slot left because precision is now set to constant AssetToken assetUpgrade = thunderLoan.getAssetFromToken(tokenA); uint feeUpgrade = thunderLoan.getFee(); bool isflanshloaningUpgrade = thunderLoan.isCurrentlyFlashLoaning( tokenA ); console.log("????SLOTS VALUE After UPGRADE????"); console.log("slot 0 for s_tokenToAssetToken =>", address(assetUpgrade)); console.log("slot 1 for s_flashLoanFee =>", feeUpgrade); console.log( "slot 2 for s_currentlyFlashLoaning =>", isflanshloaningUpgrade ); assertEq(address(asset), address(assetUpgrade)); //asserting precision value before upgrade to be what fee takes after upgrades assertEq(fee, feeUpgrade); // #POC assertEq(isflanshloaning, isflanshloaningUpgrade); } ``` Add the code above to thunderloantest.t.sol and run with `forge test --mt testSlotValuesFixedfterUpgrade -vv`. it can also be tested with `testFlashLoanAfterUpgrade function` and see the fee properly calculated for flashloan

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