XRPL AMM

CertiK21 Jun 2023Code version: not recorded (see the report)

Audit

CertiK reviewed XRP Ledger (XRPL AMM) on 21 Jun 2023: 31 findings, 0 critical; 29 marked fixed, 2 open.

No open critical findings

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Findings31

Statuses are the security firm’s own, from its report.

Severity	Open	Fixed
Critical	0	0
High	0	0
Medium	0	8
Low	2	21

LowBig LP holder can minimize feesOpen

The TradingFee of the AMM instance is a votable parameter. Any account that holds the corresponding LPTokens can cast a vote using the new `AMMVote` transaction. During `AMMVote` processing the weights of all the votes are recomputed, and the TradingFee for the AMM instance is updated. Up to 8 voting slots supported. However, the voting can be manipulated, a rich person can perform trades without fees. Consider the scenario: - Griefer has significant balances of TokenA and TokenB but wants to rebalance their portfolio. - Griefer performs `AMMDeposit(tfTwoAsset)` with significant amounts. - Using big LPTokens balance Griefer submits `AMMVote(0%)` to minimize the effective fees. - Griefer performs the desired swap operation with low fees. - Griefer performs `AMMWithdraw(tfTwoAsset)` to return their tokens. - As a result, the trader can perform quick liquidity deposits just to **avoid the fees**.

LowBig LP holder can push out other fee votersOpen

The TradingFee of the AMM instance is a votable parameter. Any account that holds the corresponding LPTokens can cast a vote using the new `AMMVote` transaction. During `AMMVote` processing the weights of all the votes are recomputed, and the TradingFee for the AMM instance is updated. Up to 8 voting slots supported. However, a rich person can push out other voters. Consider the scenario: - Imagine Griefer's weight is 81, and the other traders' weights are 10 each, 70 in total. - Then Griefer is supposed to have 54% voting power only. - However, they can split the LPTokens equally into 8 accounts and perform `AMMVote`. - That will push out other voters, **giving 100% voting power**. - Griefer can combine back the LPTokens.