Submitted by kyliek
LiquidityProviders.sol#L388
LiquidityProviders.sol#L392
LP token holders can not redeem their tokens when the pool is in the deficit state, i.e. currentLiquidity << providedLiquidity. This is due to that LP shares are computed based on providedLiquidity and the actual available pool balance is based on currentLiquidity.
When a high valued withdrawal happens in the liquidity pool of the destination chain, the current liquidity will be reduced when the executor calls sendFundsToUser
LiquidityPool.sol#L285
and the pool contract balance will also be reduced by the same amount. The pool reached a deficit state with provided liquidity much bigger than current liquidity.
The LP shares are computed based on the value of totalReserve that is roughly equivalent to totalLiquidity + LpFees. In a deficit state, totalReserve could be much bigger than the available pool balance (up to 90% since max fee is 10%).
If the LP token holder wants to redeem his shares,
will underflow and revert and
will revert because there is not enough balance.
This is a tricky problem. On one hand, separating currentLiquidity from providedLiquidity made sure that by bridging tokens over, it will not inflate or deflate the pool. On the other hand, decoupling the two made it hard to compute the actual available liquidity to redeem LP shares. One may need to think through this a bit more.
ankurdubey521 (Biconomy) disagreed with High severity and commented:
pauliax (judge) decreased severity to Medium and commented:
For this contest, 39 reports were submitted by wardens detailing low risk and non-critical issues. The report highlighted below by hickuphh3 received the top score from the judge.
The following wardens also submitted reports: cmichel, 0x1f8b, catchup, rfa, CertoraInc, PPrieditis, IllIllI, Ruhum, gzeon, minhquanym, bitbopper, 0xngndev, benk10, Dravee, kenta, kyliek, defsec, saian, samruna, berndartmueller, robee, danb, jayjonah8, hubble, WatchPug, 0xwags, Cantor_Dust, TerrierLover, 0xNazgul, csanuragjain, throttle, z3s, ye0lde, XDms, cryptphi, hagrid, 0v3rf10w, and 0xDjango.
