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Owner can frontrun exercise to increase fees #323

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HardlyDifficult opened this issue May 30, 2022 · 2 comments
Closed

Owner can frontrun exercise to increase fees #323

HardlyDifficult opened this issue May 30, 2022 · 2 comments
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@HardlyDifficult
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From horsefacts in #294

Owner can frontrun exercise to increase fees
A malicious owner account can observe and frontrun calls to exercise and extract 100% of the strike price as a protocol fee.

Scenario:

A malicious owner observes a call to exercise in the mempool.
The owner frontruns exercise and calls setFee to set feeRate to 100%
The full strike price is paid as a protocol fee, and 0 ETH are credited to the vault beneficiary.
Recommendation: Ensure the contract owner is a timelock proxy with a waiting period for parameter changes. Emit an event on changes to feeRate (See N-01 below).
@HardlyDifficult HardlyDifficult added bug Something isn't working duplicate This issue or pull request already exists 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value labels May 30, 2022
@HardlyDifficult
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Dupe of #47

@HardlyDifficult HardlyDifficult mentioned this issue May 30, 2022
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@JeeberC4 JeeberC4 removed bug Something isn't working duplicate This issue or pull request already exists 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value labels Jun 6, 2022
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JeeberC4 commented Jun 6, 2022

Issue recreated with script that includes all required data.

@JeeberC4 JeeberC4 added the invalid This doesn't seem right label Jun 6, 2022
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