Thunder Loan

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

Upgrade changes storage layout and corrupts proxy state

Root + Impact

Description

The protocol is upgradeable through a proxy, so new implementations must preserve the exact storage layout of the old implementation.

ThunderLoan.sol stores s_feePrecision before s_flashLoanFee. ThunderLoanUpgraded.sol removes s_feePrecision and replaces it with a constant, moving s_flashLoanFee into the old s_feePrecision slot. After the proxy upgrades, the proxy keeps the old storage values but interprets them using the new layout. As a result, s_flashLoanFee becomes 1e18 instead of 3e15.

// ThunderLoan.sol
mapping(IERC20 => AssetToken) public s_tokenToAssetToken;
uint256 private s_feePrecision; // @> slot contains 1e18
uint256 private s_flashLoanFee; // @> slot contains 3e15
mapping(IERC20 token => bool currentlyFlashLoaning) private s_currentlyFlashLoaning;
// ThunderLoanUpgraded.sol
mapping(IERC20 => AssetToken) public s_tokenToAssetToken;
uint256 private s_flashLoanFee; // @> now reads old s_feePrecision value: 1e18
uint256 public constant FEE_PRECISION = 1e18;
mapping(IERC20 token => bool currentlyFlashLoaning) private s_currentlyFlashLoaning;

Risk

Likelihood:

  • This occurs whenever the planned upgrade from ThunderLoan to ThunderLoanUpgraded is executed.

  • The proxy storage is reused automatically during UUPS upgrades.

Impact:

  • Flashloan fee becomes 100% instead of 0.3%.

  • Storage for later variables is also shifted, risking broken protocol behavior.

Proof of Concept

function testUpgradeCorruptsFlashLoanFee() public {
ThunderLoan implementation = new ThunderLoan();
ERC1967Proxy proxy = new ERC1967Proxy(address(implementation), "");
ThunderLoan thunderLoan = ThunderLoan(address(proxy));
thunderLoan.initialize(address(mockPoolFactory));
assertEq(thunderLoan.getFee(), 3e15);
ThunderLoanUpgraded upgraded = new ThunderLoanUpgraded();
thunderLoan.upgradeTo(address(upgraded));
ThunderLoanUpgraded upgradedProxy = ThunderLoanUpgraded(address(proxy));
// Reads old s_feePrecision slot as the new s_flashLoanFee.
assertEq(upgradedProxy.getFee(), 1e18);
}

Recommended Mitigation

- uint256 private s_flashLoanFee;
- uint256 public constant FEE_PRECISION = 1e18;
+ uint256 private s_feePrecision;
+ uint256 private s_flashLoanFee;

Or keep the original variable layout and only add new variables after all existing storage variables.

Updates

Lead Judging Commences

ai-first-flight-judge Lead Judge about 5 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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