Submitted by ladboy233, also found by joestakey, Trust, and chaduke
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/contracts/liquid-staking/LiquidStakingManager.sol#L202
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/contracts/liquid-staking/LiquidStakingManager.sol#L210
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/contracts/liquid-staking/LiquidStakingManager.sol#L426
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/contracts/liquid-staking/LiquidStakingManager.sol#L460
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/contracts/smart-wallet/OwnableSmartWallet.sol#L63
DAO admin in LiquidStakingManager.sol can rug the registered node operator by stealing their fund via arbitrary execution.
After the Liquid Staking Manager.so is deployed via LSDNFactory::deployNewLiquidStakingDerivativeNetwork,
The DAO address governance address (contract) has very high privilege.
The DAO address can perform arbitrary execution by calling LiquidStakingManager.sol::executeAsSmartWallet
When a register a new node operator with 4 ETH by calling registerBLSPublicKeys:
the smart wallet created in the smart contract custody the 4 ETH.
but  Dao admin in LiquidStakingManager.sol can rug the registered node operator by stealing their fund in the smart wallet via arbitrary execution.
As shown in POC:
first we add this smart contract in LiquidStakingManager.t.sol
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/test/foundry/LiquidStakingManager.t.sol#L12
We add the two POC,
https://github.com/code-423n4/2022-11-stakehouse/blob/4b6828e9c807f2f7c569e6d721ca1289f7cf7112/test/foundry/LiquidStakingManager.t.sol#L35
the first POC shows the admin can steal the ETH from the smart contract via arbrary execution.
We run the test:
the result is
the second POC shows the admin can steal the ERC20 token from the smart contract via arbrary execution.
We run the test:
the running result is
Manual Review, Foundry
We recommend not give the dao admin the priviledge to perform arbitrary execution to access users fund.
vince0656 (Stakehouse) confirmed
