M-04 MitigationConfirmed

[c4-bot-1]

Lines of code

Vulnerability details

C4 Issue

M-04: Function Pool.validateOffer() does not work correctly in case principalAmount > currentBalance

Comments

Original vulnerabilities/impacts:
In Pool::validateOffer, check is in place to see of the pool has enough funds to lend, when the required loan principal amount is greater than the pool’s current balance, reallocate() is invoked to transfer the delta amount to the pool.

The problem is the input argument(principalAmount - currentBalance) in reallocate() is incorrect, which will result in funds being transferred out of the pool instead.

Mitigation

Fix: https://github.com/pixeldaogg/florida-contracts/pull/365/files

//src/lib/pools/Pool.sol
    function validateOffer(bytes calldata _offer, uint256 _protocolFee) external override onlyAcceptedCallers {
...
        } else if (principalAmount > currentBalance) {
            IBaseInterestAllocator(getBaseInterestAllocator).reallocate(
                currentBalance, principalAmount, true
            );
        }

The correct parameter input should be reallocate(currentBalance, principalAmount, true). As in reallocate, currentBalance (_currentIdle) and principalAmount(_targetIdle) will be compared and their delta is the transfer amount. This is consistent with the mitigation.

The mitigation corrects the mistake and resolves the issue.

Conclusion

LGTM

[c4-judge]

alex-ppg marked the issue as satisfactory

[c4-judge]

alex-ppg marked the issue as confirmed for report