Submitted by Ruhum, also found by gzeon and harleythedog.
Same thing as the ETH issue I reported earlier. I wasnt sure if those are supposed to be a single issue or not. The concept is the same. But, now you lose LPT tokens.
The L1Migrator.migrateLPT() function can be called by anyone. It pulls all the LPT from the BridgeMinter contract and starts the process of moving the funds to L2. First of all, this function is only executable once. The RetryableTicket created with the first call is the only chance of moving the funds to L2.
The attacker can call the function with parameters that make the creation of the RetryableTicket on L2 fail. Thus, the LPT sits in the L1Migrator contract with no way of moving it to L2 or anywhere else. Effectively, the funds are lost.
The function is only executable once because it uses the amount returned by IBridgeMinter(bridgeMinterAddr).withdrawLPTToL1Migrator() to specify the amount of LPT to be sent to L2: https://github.com/livepeer/arbitrum-lpt-bridge/blob/main/contracts/L1/gateway/L1Migrator.sol#L342
After the first call to migrateLPT() that function will always return 0 since the BridgeMinter wont have any more LPT: https://github.com/livepeer/protocol/blob/streamflow/contracts/token/BridgeMinter.sol#L107
So after the attacker called migrateLPT() with insufficient funds to create a RetryableTicket on L2 we have the following state:
The same thing can also be triggered by a non-malicious caller by simply providing insufficient funds. The whole design of only being able to try once is the issue here.
Instead of using the amount returned by IBridgeMinter(bridgeMinterAddr).withdrawLPTToL1Migrator() you should use the balance of the L1Migrator contract.
It might also make sense to not allow anybody to call the function. I dont see the benefit of that.
Actually, the funds arent lost. The funds are sent to the Escrow contract which can be used to transfer the funds back to the BridgeMinter contract. Thus, you could reset the whole thing to its initial state and call L1Migrator.migrateLPT() again. But, a really persistent attacker has the ability to DoS the function by frontrunning any call to it which results in the RetryableTicket failing again. Thus, youd have to transfer the funds from the Escrow contract to the BrigeMinter again and so on.
So the same scenario Ive outlined earlier is still viable. Its just a bit more difficult now since it has a higher cost for the attacker now. Because of that I think its an medium issue instead of high.
Also, the mitigation steps Ive given arent valid. You cant use the L1Migrator contracts balance since it will always be 0 (the funds are sent to the Escrow contract). Thus the best solution would be to just limit the access to the function.
0xleastwood (judge) commented:
yondonfu (Livepeer) confirmed and resolved:
