Submitted by jonah1005
Pool can mint arbitrary Synth provided as long as its a valid synth. When there are multiple curated pools and synth (which the protocol is designed for), hackers can mint expensive synthetics from a cheaper AMM pool. The hacker can burn the minted synth at the expensive pool and get profit. The arbitrage profit can be amplified with flash loan services and break all the pegs.
Pools mintSynth logic, Synths mintSynth logic, and Synths authorization logic.
The price of the synthetics to be mint is calculated in Pool based on the AMM price of the current Pool
Heres a web3.py script of minting arbitrary Synth in a pool.
For simplicity, two pools are set with the assumption that link is 10x expensive than dai.
The log of the above script
Recommend Checking the provided synths underlying token in mintSynth
verifyfirst (Spartan) confirmed:
