Submitted by jonah1005
The VaderPool would compensate users IL. The formula it uses to calculate lp value is vulnerable to manipulation.
The formula to calculate the lp value is similar to warp finance which is known to be unsafe. warpfinance-incident-root-cause-analysis (Please to refer to the POC section)
The Attacker can purchase an old lp position, manipulate price, take IL compensation and drain the reserve.
I consider this is a high-risk issue.
VaderMath.sol#L69-L93
The lp value is calculated as [(A0 * P1) + V0] and // [(A1 * P1) + V1].
Assume that theres an ETH pool and theres 100 ETH and 100 Vader in the pool.
None
Please use the fair lp pricing formula from alpha finance instead. fair-lp-token-pricing
SamSteinGG (Vader) disputed:
alcueca (judge) commented:
SamSteinGG (Vader) commented:
