Thunder Loan

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

Mixing up variable location causes storage collision in `ThunderLoan::s_flashLoanFee` and `ThunderLoanUpgraded::s_currentlyFlashLoaning`, freezing protocol.

Root + Impact

Description

  • Describe the normal behavior in one or more sentences

  • Explain the specific issue or problem in one or more sentences

**Description:**
`ThunderLoan.sol` has two variables in the following order
```solidity
uint256 private s_feePrecision;
uint256 private s_flashLoanFee; // 0.3% ETH fee
```
however, the upgraded contract `ThunderLoanUpgraded` has them in different order
```solidity
uint256 private s_flashLoanFee; // 0.3% ETH fee
uint256 public constant FEE_PRECISION = 1e18;
```
due to how solidity works after the upgrade the `s_flashLoanFee` will have the value of `s_feePrecision`.
you can't adjust the location of storage variables, and removing storage variables for constant variables, breaks the storage location as well.

Risk

Likelihood:

  • it can happen only after the protocol upgrades

  • Reason 2

Impact:


  • the `s_currentlyFlashLoaning` mapping will start in the wrong storage slot.
    After the upgrade, the `s_flashLoanFee` will have the value of `s_feePrecision`.
    This means that users who take out flash loans right after an upgrade will be charged the wrong fee.

Proof of Concept

**Proof of Concept:**
<details>
<summary>Proof Of Code</summary>
Place the following into `ThunderLoanTest.t.sol`
```solidity
import { ThunderLoanUpgraded } from "../../src/upgradedProtocol/ThunderLoanUpgraded.sol";
.
.
.
function testUpgradesBreaks() public {
uint256 feeBeforeUpgrade = thunderLoan.getFee();
vm.startPrank(thunderLoan.owner());
ThunderLoanUpgraded thunderLoanUpgraded = new ThunderLoanUpgraded();
thunderLoan.upgradeToAndCall(address(thunderLoanUpgraded), "");
uint256 feeAfterUpgrade = thunderLoan.getFee();
vm.stopPrank();
console2.log("Fee Before:", feeBeforeUpgrade);
console2.log("Fee After:", feeAfterUpgrade);
assert(feeBeforeUpgrade != feeAfterUpgrade);
}
```
you can also see the storage layout difference by running `forge inspect ThunderLoan storage` and `forge inspect ThunderLoanUpgraded storage`.
</details>

Recommended Mitigation

**Recommended Mitigation:** If you must remove the storage variable, leave it as blank as to mess up the storage slots
```diff
- uint256 private s_feePrecision;
- uint256 private s_flashLoanFee; // 0.3% ETH fee
+ uint256 private s_blank;
+ uint256 private s_flashLoanFee;
+ uint256 public constant FEE_PRECISION = 1e18;
```
Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 21 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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