Quantstamp reviewed Fodl Finance (Fodl) on 13 Oct 2021: 11 findings, 0 critical; 4 marked fixed, 5 acknowledged, 2 open.
Report hosted on certificate.quantstamp.com.
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Statuses are the security firm’s own, from its report.
| Severity | Open | Acknowledged | Fixed |
|---|---|---|---|
| Critical | 0 | 0 | 0 |
| High | 0 | 0 | 0 |
| Medium | 0 | 0 | 0 |
| Low | 2 | 5 | 4 |
When creating a new account, the `create2` salt is defined as `uint256 salt = uint256(keccak256(abi.encodePacked(msg.sender, fodlNFT.balanceOf(msg.sender))));`. Since the NFT is an ERC721, it may be transferred to a different address. Suppose the user has created one account, but then transfers it to a different address (such that `fodlNFT.balanceOf(user)` is reduced back to 0). On a second invocation of `createAccount()`, the salt `uint256(keccak256(abi.encodePacked(user, 0)))` will be exactly the same as the first invocation, and the `create2` call will fail.
The clone-and-own approach involves copying and adjusting open source code at one's own discretion. From the development perspective, it is initially beneficial as it reduces the amount of effort. However, from the security perspective, it involves some risks as the code may not follow the best practices, may contain a security vulnerability, or may include intentionally or unintentionally modified upstream libraries. Rather than the clone-and-own approach, a good industry practice is to use a framework for managing library dependencies. This eliminates the clone-and-own risks yet allows for following best practices, such as, using libraries.
1. In `StopLossStorage.sol` on L25, the `unwindFactor` is claimed to range from “1 to 100”. However, `SimplePositionStopLossConnector.configureStopLoss()` checks that `unwindFactor <= MANTISSA`. A similar issue exists for `slippageIncentive`. 1. In `SimplePositionStopLossConnector.sol` on L52,54: ``` // check that collateralUsageLimit <= collateralUsage require(getCollateralUsageFactor() > stopLossConfiguration.collateralUsageLimit, 'SLC5'); ``` Either the first line should use `<=`, or the second line should use `>=` to match the comment. Note that L161 uses the same constraint.
`create2` is used in the context where there is a need to predict the contract address before deploying it. There is no mention in the documentation for such a feature, yet, the opcode is still used in `createAccount()` function.
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