Submitted by stonesandtrees
All of the rewardToken in a given AMM pool can be removed from the AMM pool and distributed as LP rewards.
In the stabilize method in the StabilizerNode the initial check to see if the Malt price needs to be stabilized it uses a short period TWAP:
https://github.com/code-423n4/2021-11-malt/blob/main/src/contracts/StabilizerNode.sol#L156
However, if the price is above the threshold for stabilization then the trade size required to stabilize looks at the AMM pool directly which is vulnerable to flashloan manipulation.
https://github.com/code-423n4/2021-11-malt/blob/main/src/contracts/DexHandlers/UniswapHandler.sol#L250-L275
Attack:
The amount of money that can be directly stolen by a malicious actor is small but it can cause a lot of pain for the protocol as the pool will be destroyed and confusion around rewards will be created.
Use a short TWAP to calculate the trade size instead of reading directly from the pool.
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Alex the Entreprenerd (judge) commented:
