Skip to content

Instantly share code, notes, and snippets.

@yubrew
Last active January 5, 2024 17:09
Show Gist options
  • Save yubrew/d3511f1017a8b9626dcd45e62c91262f to your computer and use it in GitHub Desktop.
Save yubrew/d3511f1017a8b9626dcd45e62c91262f to your computer and use it in GitHub Desktop.
injective cw20 adapter chaindefender audit results

"The identified vulnerabilities are accurate and relevant to the code provided. The exploit scenarios are also viable, as detailed below:

  1. Unchecked return value from function call: This vulnerability is correctly identified and the exploit scenario is plausible. If an error occurs in one of the handler functions but isn't checked or handled, it could lead to unexpected behavior or even loss of funds.

  2. Lack of Access Control: This vulnerability is correctly identified and its exploit scenario is viable. Without proper access control mechanisms, unauthorized users might be able to perform actions that should be restricted, potentially leading to incorrect results or even loss of funds.

  3. Integer Overflow/Underflow: This vulnerability is accurately identified and its exploit scenario is feasible. If an integer overflow or underflow occurs during arithmetic operations on unsigned integers without any checks, it could lead to incorrect results or even loss of funds.

However, for a more comprehensive assessment, it would be necessary to have more context about how this contract interacts with other contracts in the system and what kind of transactions it's expected to handle.

Mitigation strategies suggested for each vulnerability are accurate and should be implemented in order to secure the contract against potential exploits. " "Vulnerability 1: Unchecked Result of deps.querier.query_wasm_smart(addr, &msg) in ensure_address_is_cw20 function

This vulnerability is accurate and relevant. The result of the query is not checked which could lead to unexpected behavior if the call fails.

Exploit Scenario: An attacker can't directly exploit this vulnerability as it would require them to have control over the network or the address being queried. However, if for any reason (network error, invalid address) the call to deps.querier.query_wasm_smart(addr, &msg) fails, it could lead to incorrect execution of the smart contract and potential loss of funds or manipulation of contract state.

Recommendation: The code should be updated to check for errors after querying and handle them appropriately.

Vulnerability 2: Potential Reentrancy in handle_on_received_cw20_funds_msg function

This vulnerability is also accurate and relevant. The function calls an external contract (the CW20 contract) before updating its own state which opens up a potential reentrancy attack vector.

Exploit Scenario: A malicious CW20 contract could potentially exploit this by calling back into the smart contract during execution of the create_mint_tokens_msg function before state update has been completed leading to unexpected behavior or manipulation of contract state.

Recommendation: To mitigate this vulnerability, follow Checks-Effects-Interactions pattern where all external calls are made last after updating the state. " "The identified vulnerabilities and their exploit scenarios are generally accurate, but some of them might not be as severe or exploitable as suggested. Here's a more detailed assessment:

  1. Superfluous Funds Provided:

    • This is more of a design decision than a vulnerability. The contract is designed to reject transactions with excess funds to prevent mistakes by users. An attacker could indeed cause a denial of service by repeatedly sending transactions with excess funds, but this would also cost the attacker in terms of gas fees.
  2. Contract Not Registered Check:

    • This is indeed a potential vulnerability if an attacker can manipulate the check for whether a contract is registered or not. However, it's unclear from the provided code how exactly an attacker could do this.
  3. Reentrancy Attacks:

    • The risk of reentrancy attacks is correctly identified, but the exploit scenario isn't entirely accurate because it assumes that errors don't revert state changes, which isn't true in most smart contract platforms (including CosmWasm). If an error occurs during execution (like when too many funds are sent), all state changes made during that transaction are typically reverted.
  4. Not Enough Balance To Pay Denom Creation Fee:

    • While it's true that an error will be thrown if there aren't enough funds to pay the denom creation fee, this doesn't necessarily mean that an attacker can exploit this to prevent new denoms from being created. It just means that anyone trying to create a new denom needs to provide enough funds for the fee.
  5. No Registered Tokens Provided:

    • This check exists to ensure that only registered tokens can be redeemed through handle_redeem_msg. If an attacker tries to redeem unregistered tokens, they'll simply get an error message and no harm done.

In conclusion, while there are areas where improvements could be made (like adding additional checks or guards against potential attacks), none of these issues seem like critical vulnerabilities that put user funds at immediate risk under normal circumstances. " "The identified vulnerabilities in the smart contract code are as follows:

  1. Re-entrancy Vulnerability: The assessment correctly identifies that there is no re-entrancy vulnerability present in this code. There are no external calls made before state changes, which would be a requirement for such a vulnerability.

  2. Unchecked Return Values: The assessment correctly identifies that there are no unchecked return value vulnerabilities present in this code. All function return values appear to be properly checked.

  3. DoS with Unexpected Revert: The assessment correctly identifies that there is no DoS with Unexpected Revert vulnerability present in this code. There do not appear to be any conditions that can be manipulated by an attacker to force a revert and cause a denial of service attack.

  4. Integer Overflow and Underflow: The assessment correctly identifies that there is no Integer Overflow and Underflow vulnerability present in this code. Arithmetic operations use the Uint128 type, which protects against overflow and underflow issues.

  5. Insufficient Validation of Function Inputs: The assessment incorrectly suggests that there might be an Insufficient Validation of Function Inputs vulnerability, but it appears all function inputs are validated properly.

  6. Insufficient Logging: This point raised by the report is valid, as logging events could provide valuable information during debugging or auditing processes.

  7. Gas Limit Issues: The assessment correctly identifies that there is no Gas Limit Issues vulnerability present in this code because none of the functions seem to require more gas than the maximum limit set by Ethereum network (block gas limit).

In terms of exploit scenarios, only one potential scenario was identified:

  1. Insufficient Logging: An attacker could potentially exploit lack of logging by performing actions leading to unexpected behavior making it difficult to debug or audit the contract; however, without direct financial implications or disruption possibilities, severity remains low.

Overall, while some minor improvements could certainly enhance robustness and maintainability (like adding event logs), from a security standpoint it seems like good practices have been followed throughout development thus far. " "The identified vulnerabilities are accurate and relevant to the smart contract code provided. Here is an assessment of each vulnerability:

  1. Lack of input validation: This vulnerability is highly accurate and relevant. The function handle_register_msg does not validate the addr parameter, which could lead to unexpected behavior if an invalid address is used.

    Exploit Scenario: An attacker can send a transaction with an invalid addr parameter to the smart contract, causing it to behave unexpectedly or even halt its operations.

  2. Potential for Re-entrancy Attacks: This vulnerability is also accurate and relevant. The function handle_redeem_msg has potential for re-entrancy attacks due to lack of checks before calling another contract's functions.

    Exploit Scenario: An attacker can register a malicious contract that calls back into handle_redeem_msg, leading to a re-entrancy attack that could potentially drain funds from the contract.

  3. Overflows and Underflows: This vulnerability is less likely but still possible due to lack of safe math operations in the smart contract code.

    Exploit Scenario: An attacker can cause arithmetic operations in transactions sent to the smart contract to overflow or underflow, manipulating the state of the contract in their favor.

In conclusion, all three vulnerabilities identified are viable exploit scenarios that pose significant risks to users interacting with this smart contract. It's recommended that these issues be addressed promptly by implementing proper input validation, re-entrancy guards, and safe math operations where necessary. " "Vulnerability 1: Superfluous Funds Provided

This is not a vulnerability. The contract is designed to handle only one fund at a time. If more than one fund is sent, the function returns an error as expected. This does not disrupt the contract's normal operation but rather prevents it from processing invalid transactions.

Vulnerability 2: Contract Registration without Existence Check

This is a true vulnerability. An attacker can register the same contract multiple times, which could potentially be used to manipulate or disrupt the system.

Exploit Scenario: An attacker calls handle_register_msg with the address of an already registered contract. The function does not check if the contract is already registered and registers it again.

Mitigation: Before registering a contract, check if it already exists in the registry. If it does, return an error or ignore the request.

Vulnerability 3: Unchecked Result of query_balance

This is also a true vulnerability. If query_balance fails for any reason (e.g., because of an invalid contract address), this could lead to incorrect behavior in subsequent parts of the code that rely on this balance information.

Exploit Scenario: An attacker provides an invalid contract address when calling ensure_sufficient_create_denom_balance. The function fails to check the balance of the contract and continues execution, potentially leading to incorrect behavior.

Mitigation: Always check the result of query_balance and handle any errors appropriately.

Vulnerability 4: Potential Reentrancy

This potential reentrancy attack identified here seems like a false positive as there are no state changes after calling another contract (cw20_message). Hence even though control flow might return back into our smart-contract due to malicious external contracts, there are no state changes that can be exploited by such reentrant calls.

However, good practice would still recommend using Checks-Effects-Interactions pattern where all interactions with other contracts should happen at last after all internal work including state updates have been done. " "The identified vulnerabilities are accurate and relevant to the code provided.

Vulnerability 1: Insufficient Funds Check

This vulnerability is valid as the function handle_register_msg() in execute_register.rs does not properly check if the funds provided are enough to cover the denom creation fee. The exploit scenario described is feasible, where an attacker could potentially register a contract without paying the full denom creation fee.

Exploit Scenario:

// An attacker calls handle_register_msg() with insufficient funds.
let insufficient_funds = vec![Coin { denom: ""token"".to_string(), amount: Uint128::from(999u64) }];
let info = MessageInfo {
    sender: ""attacker"".into(),
    funds: insufficient_funds,
};
let addr = Addr::unchecked(""contract"");
handle_register_msg(deps, env, info, addr);

Vulnerability 2: No Check for Contract Registration

This vulnerability is also valid as the function handle_on_received_cw20_funds_msg() in execute_receive.rs does not check whether a contract registration was successful before proceeding. The exploit scenario described is feasible where an attacker could call functions on a contract that isn't registered leading to unexpected behavior.

Exploit Scenario:

// An attacker calls handle_on_received_cw20_funds_msg() with a contract that's not registered.
let unregistered_contract_addr = ""unregistered_contract"";
let recipient = ""recipient"".to_string();
let amount = Uint128::from(1000u64);
handle_on_received_cw20_funds_msg(deps, env, info.clone(), recipient.clone(), amount);

In both cases, proper checks need to be implemented to ensure that contracts cannot be manipulated by providing insufficient funds or using unregistered contracts." "The identified vulnerabilities are accurate and relevant to the code provided. The exploit scenarios are also viable, as they describe realistic situations where an attacker could take advantage of these vulnerabilities to cause harm or steal assets. Here's a detailed analysis:

  1. Unauthorized Contract Registration: This vulnerability is accurately identified and its exploit scenario is viable. An attacker could indeed register malicious contracts or duplicate existing ones, leading to confusion among users and potential asset loss.

  2. Insufficient Validation of CW-20 Contract: This vulnerability is correctly identified, but the exploit scenario might be less likely in practice due to the complexities involved in creating a faulty contract that always returns a fixed response to the TokenInfo query.

  3. Superfluous Funds Not Returned: This vulnerability is accurately identified and its exploit scenario is very plausible because users often make mistakes when sending funds.

  4. Potential Denial of Service: This vulnerability is accurately identified, but its exploit scenario might be less likely due to gas fees associated with repeatedly calling functions on blockchain networks.

  5. Lack of Input Validation: While this vulnerability has been correctly identified, it's important to note that providing a malformed input string would not necessarily lead to unexpected behavior or a crash unless there are specific conditions within the contract that depend on this input being formatted in a certain way.

In conclusion, all five vulnerabilities have been correctly identified and their respective exploit scenarios are plausible under certain circumstances. " "Vulnerability 1: Lack of Access Control

The identified vulnerability is accurate. The instantiate function does not have any access control, which means that anyone can call it and potentially change the contract version.

However, the exploit scenario is not viable in this case. In Cosmos SDK based blockchains (which includes Injective), the instantiate function is a special function that gets called only once when a new instance of a contract is created. After its initial execution during contract creation, it cannot be called again. Therefore, while there's technically no access control in place, the nature of how this function operates within the blockchain architecture inherently prevents unauthorized or repeated calls.

Vulnerability 2: Lack of Input Validation

This vulnerability identification is correct but the exploit scenario isn't entirely accurate. The handle_update_metadata function indeed lacks input validation for cw20_addr. However, if an invalid address was provided as input to this function, it wouldn't result in unexpected behavior or errors as suggested in the report.

Instead, due to error handling already present in code (ContractError::ContractNotRegistered), providing an unregistered CW20 token address would simply return an error message indicating that the contract isn't registered. This doesn’t pose any security threat or risk to funds.

Vulnerability 3: Potential Reentrancy

The identified potential reentrancy issue seems inaccurate and misleading. While it's true that calling external contracts can introduce reentrancy vulnerabilities if not handled properly, smart contracts on Cosmos SDK based chains (like Injective) are executed atomically and they don’t support nested transactions like Ethereum does.

In this specific case with handle_redeem_msg, even though external contracts are being called (cw20_addr), these calls will be queued up by the runtime environment and executed one after another only after current transaction completes successfully. This makes reentrancy attacks impossible on such platforms thus making this finding irrelevant.

Overall Assessment:

While all three identified vulnerabilities seem plausible at first glance from a general smart contract security perspective, none of them hold true when considered within context of how contracts operate on Cosmos SDK based blockchains like Injective Protocol specifically. " "The identified vulnerabilities are accurate and relevant to the code provided. The exploit scenarios are also viable, given the right conditions. Here's a detailed assessment:

  1. Unchecked Contract Registration: This is a valid vulnerability as there is no validation process before registering a contract. An attacker could potentially register a malicious contract which could lead to unexpected behavior or loss of funds.

    Exploit Scenario:

    • An attacker creates a malicious contract that behaves unexpectedly or maliciously when interacted with.
    • The attacker registers this contract using RegisterCw20Contract.
    • The contract is now registered and can be interacted with by other contracts or users, leading to unexpected or malicious behavior.
  2. Superfluous Funds Handling: This vulnerability is also valid as it can lead to financial loss for users who accidentally send too much funds when calling this function.

    Exploit Scenario:

    • A user accidentally sends extra funds when calling handle_on_received_cw20_funds_msg.
    • The function returns an error and does not handle the extra funds.
    • The user's extra funds are lost.
  3. Contract Not Registered Check: This vulnerability might not have severe consequences but it can still cause confusion for users who try to update metadata of unregistered contracts.

    Exploit Scenario:

    • A user attempts to update the metadata of a contract that is not registered.
    • The function simply returns an error and does not handle this case further.
    • The user is left confused and unsure of how to proceed.

In conclusion, these vulnerabilities need immediate attention in order to prevent potential exploits that could result in loss of funds or unauthorized actions on behalf of the smart contracts involved." "1. Vulnerability: Unchecked Return Value - Accuracy: True - Relevance: High - Exploit Scenario: The exploit scenario is accurate and relevant. An attacker could send a transaction with incorrect parameters to the handle_on_received_cw20_funds_msg and execute functions, potentially leading to unexpected behavior or loss of funds.

  1. Vulnerability: Unverified User Input

    • Accuracy: False
    • Relevance: Low
    • Exploit Scenario: This vulnerability is not present in the provided code. The functions handle_update_metadata and handle_redeem_msg do check for errors related to invalid input.
  2. Vulnerability: Reentrancy

    • Accuracy: False
    • Relevance: Low
    • Exploit Scenario: The identified function does not seem to be vulnerable to reentrancy attacks as it does not make external calls before all its state changes are done.
  3. Vulnerability: Lack of Access Controls

    • Accuracy: False
    • Relevance: Low
    • Exploit Scenario: The identified functions do have access controls implemented, hence this finding seems like a false positive.
  4. Vulnerability: Denial of Service (DoS)

    • Accuracy: False
    • Relevance: Medium
    • Exploit Scenario: While it's true that there isn't an explicit limit on the number of contracts that can be registered, this doesn't necessarily lead to a DoS vulnerability because registering contracts consumes resources (i.e., gas) which are inherently limited per block by the underlying blockchain protocol.

In conclusion, only one out of five vulnerabilities were accurately identified and relevant in terms of exploit scenarios presented. It's recommended that further analysis should be performed taking into account these findings. " "The vulnerabilities identified in the contract seem to be accurate and relevant. However, the exploit scenarios for each vulnerability are not entirely viable due to certain constraints in the contract's logic.

  1. Reentrancy Attack: The reentrancy attack scenario is theoretically possible as there is no reentrancy guard implemented. However, it would require a very specific sequence of calls and interactions with other contracts that may not be feasible or likely in practice.

  2. Missing Input Validation: While it's true that the execute function does not validate its inputs, exploiting this vulnerability would also require knowledge of an arbitrary ExecuteMsg variant that could cause unexpected behavior when passed into the function. This seems unlikely given that all variants of ExecuteMsg are defined within the contract itself.

  3. Unchecked Return Values: Although return values from CW20_CONTRACTS.insert and CW20_CONTRACTS.contains functions are indeed unchecked, these functions are quite reliable and their failure could only occur under extreme circumstances such as out-of-gas errors or storage corruption which are highly unlikely.

In conclusion, while these vulnerabilities do exist in theory, exploiting them would require very specific conditions that may not be feasible or likely in practice. Nonetheless, it is still recommended to address these issues to improve the overall security of the contract. " "The identified vulnerabilities and their exploit scenarios are as follows:

  1. Re-entrancy Vulnerability: As correctly pointed out, the smart contract does not have any direct calls to external contracts in a way that state changes could be affected by the outcome of the external calls. Therefore, there is no re-entrancy vulnerability.

  2. Access Control: The lack of access control mechanisms can indeed lead to unauthorized actions such as registering new CW20 contracts by any address. However, this might not necessarily be a vulnerability if it's intended for anyone to register new CW20 contracts.

  3. Integer Overflow and Underflow: This is a false positive because Rust has built-in protections against integer overflow and underflow.

  4. DoS with Unexpected Revert: This scenario is possible where an attacker repeatedly calls the function with a contract that cannot be registered, causing the function to revert and potentially leading to a Denial of Service (DoS) attack.

  5. Front-Running: This is more of a general issue in all Ethereum smart contracts due to the public nature of transactions on the blockchain rather than specific to this contract.

  6. Gas Limit: There are no loops in this contract that could potentially consume excessive gas, making this finding irrelevant or false positive.

  7. Error Handling: Ignoring errors using unwrap_or_else method could indeed lead to unexpected behavior but it doesn't pose a security risk per se unless it leads to incorrect state transitions or loss of funds which isn't evident from provided code snippets.

  8. Unchecked Return Values: Not checking return values from external contract calls can lead to vulnerabilities if called contracts do not behave as expected but without actual examples in provided code snippets, assessing exploitability isn't feasible.

In conclusion, while some potential issues were identified - mainly around access control and error handling - none appear critical enough for immediate concern based on provided code snippets alone without considering broader context like business logic or user interactions with these functions. " "The identified vulnerabilities are accurate and relevant. The exploit scenarios are also viable, which means they could potentially be used by an attacker to exploit the system.

Vulnerability 1: Reentrancy Attack

This is a common vulnerability in smart contracts where a function calls an external contract before it resolves its state. In this case, the handle_on_received_cw20_funds_msg function first calls the register_contract_and_get_message function (which could be an external contract) before updating its state. This could allow an attacker to re-enter the function and manipulate its state leading to double-spending or other exploits.

Exploit Scenario: The provided scenario is correct. An attacker can create a malicious contract that re-enters the handle_on_received_cw20_funds_msg function when it receives a message from it, causing unexpected behavior like double-spending.

Vulnerability 2: Unchecked Return Value

This vulnerability exists because the return value of register_contract_and_get_message(deps, &env, &addr) is not checked for errors. If this function fails for any reason (like if the address is invalid), then execution will continue with potentially undefined behavior.

Exploit Scenario: The provided scenario is correct. An attacker can call handle_register_msg with an invalid address that causes register_contract_and_get_message to fail but does not stop execution of the rest of the code.

In conclusion, these vulnerabilities need to be addressed as they pose significant security risks. For instance, measures should be taken to prevent reentrancy attacks such as using mutexes or carefully structuring code so that all internal work is done before calling external contracts. Additionally, all return values should be checked for errors and handled appropriately to avoid undefined behavior. " "The identified vulnerabilities and their exploit scenarios are generally accurate. However, the feasibility of these exploit scenarios depends on several factors such as the smart contract's usage context, its interaction with other contracts, and the attacker's capabilities.

  1. Re-entrancy Vulnerability:

    • This vulnerability is correctly identified in the code. The handle_redeem_msg function in execute_redeem.rs does make external calls to other contracts which could potentially lead to re-entrancy attacks.
    • However, exploiting this vulnerability would require a sophisticated understanding of the contract's logic and control flow. Moreover, it would also require that an attacker has control over one of the called contracts or can influence its behavior.
  2. Denial of Service (DoS) with Block Gas Limit:

    • This vulnerability is accurately identified in the code. The registered_contracts function in query.rs does use a loop that iterates over all registered contracts.
    • Exploiting this vulnerability would involve registering a large number of contracts to cause gas exhaustion during execution.
  3. Unchecked Return Values:

    • This potential issue is correctly pointed out in the code where return values from external calls are not checked.
    • An attacker could potentially cause an external call to fail without detection by manipulating input parameters or state variables if they have access rights.
  4. Insufficient Validation of Inputs:

    • The report correctly identifies places where inputs are not validated before being used.
    • An attacker could provide invalid inputs causing unexpected behavior or even leading to more serious vulnerabilities like buffer overflow attacks.

In conclusion, while these vulnerabilities exist within the codebase, exploiting them requires specific conditions and advanced knowledge about blockchain security and smart contract development which may limit their practical exploitation risk level. Nonetheless, it is recommended that these issues be addressed promptly to enhance overall security posture. " "The identified vulnerabilities are accurate and relevant. Here's an assessment of the exploit scenarios:

  1. Unchecked Return Values: This vulnerability is indeed a high-risk issue as it could lead to inconsistent states in the contract, which can be exploited by attackers to cause unexpected behavior or even loss of funds. The function ensure_sufficient_create_denom_balance should have its return value checked and appropriately handled.

  2. Lack of Input Validation: This is a medium-risk issue that could potentially lead to unexpected behavior if an invalid address is provided. However, exploiting this scenario might not necessarily lead to loss of funds or unauthorized access but could disrupt normal contract operations.

  3. Lack of Access Control: This vulnerability poses a high risk as any address can call sensitive functions leading to unauthorized actions being performed on the contract. It's crucial that access control mechanisms are implemented for these functions to restrict their usage only to authorized addresses.

In terms of viability, all three vulnerabilities present plausible exploit scenarios:

  1. For the first vulnerability, an attacker could interact with the contract in such a way that it does not have enough balance for certain operations, causing inconsistencies in the state of the contract.

  2. In the second case, providing an invalid address when calling certain functions could result in unexpected behaviors like interactions with non-existent contracts.

  3. Lastly, due to lack of access controls, an attacker can perform sensitive operations leading to unauthorized actions on the contract.

Therefore, it's recommended that these issues are addressed promptly with appropriate error handling mechanisms and access controls. " "The identified vulnerabilities are relevant and accurate. Here is an assessment of the viability of the exploit scenarios:

  1. Missing Input Validation: This vulnerability is exploitable if an attacker can send a malicious ExecuteMsg that causes the smart contract to behave unexpectedly or crash. However, this depends on how the ExecuteMsg is processed in the smart contract code, which isn't clear from the provided code.

  2. Reentrancy Vulnerability: This vulnerability is highly exploitable as it allows an attacker to change state before a function call finishes execution. The exploit scenario described is viable and could lead to loss of funds or unauthorized actions.

  3. Unchecked Return Values: This vulnerability could be exploited if an attacker can manipulate the return value of CW20_CONTRACTS.contains. However, exploiting this would likely require control over internal contract state, which should not be possible in a correctly implemented smart contract environment.

  4. Lack of Access Control: This vulnerability is highly exploitable as it allows any address to call any function within the contract without restrictions. An attacker could potentially make unauthorized changes to sensitive functions like RegisterCw20Contract or UpdateMetadata.

  5. Missing Event Logs: While this does not directly introduce a security vulnerability, it makes auditing and monitoring difficult, potentially allowing other exploits to go unnoticed.

In conclusion, while some vulnerabilities may require specific conditions to exploit effectively (like Missing Input Validation and Unchecked Return Values), others present significant risks (like Reentrancy Vulnerability and Lack of Access Control). It's recommended these issues are addressed promptly. " "The identified vulnerabilities are accurate and relevant to the provided smart contract code. Here's a detailed assessment of each vulnerability:

  1. Lack of Access Control: This is a valid vulnerability as there is no access control implemented in the execute function, which means any address can call any of the contract's functions. The exploit scenario described is feasible; an attacker could indeed register a malicious CW20 contract by calling the RegisterCw20Contract function, and then manipulate the contract's state by calling the UpdateMetadata function.

  2. Potential for Reentrancy Attack: This vulnerability is also valid. The handle_redeem_msg function calls external contracts without reentrancy guards, potentially leading to reentrancy attacks where an attacker could drain funds from the contract. The exploit scenario described here is also viable: an attacker could deploy a malicious CW20 contract that has a transfer function which calls back into the vulnerable contract's handle_redeem_msg function, triggering a reentrancy attack.

  3. Unchecked Return Values: This vulnerability points out that there are unchecked return values in some parts of the code (e.g., in handle_on_received_cw20_funds_msg). While this doesn't directly lead to an exploit scenario, it could contribute to unexpected behavior or bugs in the contract if not handled properly.

In conclusion, all three vulnerabilities identified are accurate and relevant with viable exploit scenarios. "

Vulnerability 1: Re-entrancy Attack

Severity: High

The handle_redeem_msg function in the execute_redeem.rs file is vulnerable to a re-entrancy attack. This function makes external calls to other contracts without reentrancy guards, potentially leading to re-entrancy attacks where an attacker could drain funds from the contract.

Economic Exploit Scenario: An attacker could deploy a malicious CW20 contract that has a transfer function which calls back into the vulnerable contract's handle_redeem_msg function, triggering a re-entrancy attack. This could allow the attacker to redeem more tokens than they are entitled to, leading to financial loss for other users.

Mitigation Strategy: Implement a reentrancy guard in the handle_redeem_msg function. This can be achieved by introducing a mutex or state variable that locks the contract during execution of critical functions and unlocks it once these functions have completed their execution.

Vulnerability 2: Unchecked Return Values

Severity: Medium

The return values of certain functions like register_contract_and_get_message(deps, &env, &addr) and CW20_CONTRACTS.contains(deps.storage, &tokens_to_exchange.denom.cw20_addr) are not checked for errors.

Economic Exploit Scenario: If these functions fail for any reason (like if the address is invalid), then execution will continue with potentially undefined behavior. An attacker could potentially manipulate these return values leading to unexpected behavior or even manipulation of contract state.

Mitigation Strategy: Always check return values from all function calls and handle them appropriately. In case of an error, revert all changes and stop further execution to maintain the integrity of the contract's state.

Vulnerability 3: Lack of Access Control

Severity: High

There is no access control implemented in certain sensitive functions like RegisterCw20Contract, which means any address can call these functions without restrictions.

Economic Exploit Scenario: An attacker could potentially make unauthorized changes to sensitive functions like registering new CW20 contracts or updating metadata. This could lead to unauthorized actions being performed on behalf of the smart contracts involved.

Mitigation Strategy: Implement access control mechanisms for sensitive functions such as RegisterCw20Contract. Restrict usage only to authorized addresses and implement role-based access control if necessary.

Vulnerability 4: Missing Input Validation

Severity: Medium

The execute function does not validate its inputs which can lead to unexpected behavior if an invalid address is provided.

Economic Exploit Scenario: Providing an invalid address when calling certain functions could result in unexpected behaviors like interactions with non-existent contracts.

Mitigation Strategy: Validate all inputs before processing them. For instance, before using an address provided as input, check if it's valid and registered within your system.

In conclusion, while some vulnerabilities may require specific conditions to exploit effectively (like Missing Input Validation and Unchecked Return Values), others present significant risks (like Reentrancy Vulnerability and Lack of Access Control). It's recommended these issues are addressed promptly with appropriate error handling mechanisms and access controls.

Sign up for free to join this conversation on GitHub. Already have an account? Sign in to comment