Submitted by 0xRajeev
The switchEoaOnly() allows the owner to disable preventSmartContracts (the projects plan apparently is to do so after the beta-period) which will allow any smart contract to interact with the protocol and potentially exploit any underlying flash loan vulnerabilities which are specified as an area of critical concern.
The current mitigation is to optionally prevent contracts, except whitelisted partner ones, from interacting with the protocol to prevent any flash loan manipulations. A more robust approach would be to add logic preventing multiple txs to the protocol from the same address/tx.origin within the same block when smart contracts are allowed. This will avoid any reliance on trust with integrating partners/protocols.
Recommend adding logic that prevents multiple txs to the protocol from the same address and within the same block.
kristian-gro (Gro) acknowledged but disagreed with severity:
ghoul-sol (Judge) commented:
