Incorrect Error Handling

[howlbot-integration]

Lines of code

https://github.com/code-423n4/2024-07-basin/blob/7d5aacbb144d0ba0bc358dfde6e0cc913d25310e/src/functions/Stable2.sol#L314
https://github.com/code-423n4/2024-07-basin/blob/7d5aacbb144d0ba0bc358dfde6e0cc913d25310e/src/functions/Stable2.sol#L315

Vulnerability details

InvalidTokenDecimals Error:
In decodeWellData, the code checks decimal0 == 0 twice
The second check should be for decimal1, not decimal0.

if (decimal1 == 0) {
decimal1 = 18;
}

Explanation:
The second if condition incorrectly checks decimal0 instead of decimal1. This means if decimal0 is 0, it will set both decimal0 and decimal1 to 18, even if decimal1 should be checked.

Example Exploitation:
If decimal0 is 0 but decimal1 is not set correctly, it could cause incorrect scaling of reserves. This misconfiguration could lead to erroneous calculations, impacting pricing or liquidity management.

Impacts:

Incorrect token decimal handling might result in unexpected contract behavior.
Financial calculations and interactions might be misrepresented, leading to incorrect balances or transactions.

Mitigations:

Correct the condition to check decimal1 in the second if statement like this:

if (decimal1 == 0) {
decimal1 = 18;
}

Assessed type

Other

[c4-judge]

alex-ppg changed the severity to 3 (High Risk)

[c4-judge]

alex-ppg marked the issue as satisfactory