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Trading#_handleDeposit won't work with USDT and other tokens that require zero allowance before approval #241

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code423n4 opened this issue Dec 15, 2022 · 2 comments
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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working duplicate-198 satisfactory satisfies C4 submission criteria; eligible for awards

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@code423n4
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Lines of code

https://github.com/code-423n4/2022-12-tigris/blob/588c84b7bb354d20cbca6034544c4faa46e6a80e/contracts/Trading.sol#L643-L659

Vulnerability details

Impact

USDT and other tokens that require zero allowance before approval will be incompatible as a margin asset

Proof of Concept

IERC20(_marginAsset).transferFrom(_trader, address(this), _margin/_marginDecMultiplier);
IERC20(_marginAsset).approve(_stableVault, type(uint).max);
IStableVault(_stableVault).deposit(_marginAsset, _margin/_marginDecMultiplier);

Trading#_handleDeposit is used to pull marginAsset from the trader and deposit into the correct vault. Before each deposit it approves the marginAsset to the stableVault then deposits. This is problematic for assets like USDT, which require the current allowance to be zero. After the first deposit, all following deposits for USDT will revert when trying to make the approve call.

Tools Used

Manual Review

Recommended Mitigation Steps

    IERC20(_marginAsset).transferFrom(_trader, address(this), _margin/_marginDecMultiplier);
-   IERC20(_marginAsset).approve(_stableVault, type(uint).max);
+   IERC20(_marginAsset).approve(_stableVault, _margin/_marginDecMultiplier);
    IStableVault(_stableVault).deposit(_marginAsset, _margin/_marginDecMultiplier);
@code423n4 code423n4 added 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working labels Dec 15, 2022
code423n4 added a commit that referenced this issue Dec 15, 2022
@c4-judge
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GalloDaSballo marked the issue as duplicate of #198

@c4-judge
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GalloDaSballo marked the issue as satisfactory

@c4-judge c4-judge added the satisfactory satisfies C4 submission criteria; eligible for awards label Jan 22, 2023
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Labels
2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working duplicate-198 satisfactory satisfies C4 submission criteria; eligible for awards
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