Submitted by MrPotatoMagic, also found by SpicyMeatball
Blacklisted user can burn tokens during WHITELIST_ENABLED state. This breaks the main invariant from the README. This could become an issue when the admin tries to redistribute the blacklisted users UStb balance using redistributeLockedAmount() but the blacklisted user frontruns it with a burn.
According to the comment here, it is possible for an address to be whitelisted and blacklisted at the same.
During the WHITELIST_ENABLED state, the code block below is checked when burning tokens to ensure only whitelisted addresses can burn their tokens. But since blacklisted users also have the whitelisted role as per the comment above, the condition evaluates to true and allows the blacklisted address to burn tokens.
Add the conditions !hasRole(BLACKLISTED_ROLE, msg.sender) and !hasRole(BLACKLISTED_ROLE, from) to the check.
iethena (Ethena Labs) disputed via duplicate issue #3 and commented:
