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Annualized fee APY dependence on the frequency of executing a function #280

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code423n4 opened this issue Dec 19, 2021 · 1 comment
Open

Annualized fee APY dependence on the frequency of executing a function #280

code423n4 opened this issue Dec 19, 2021 · 1 comment
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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working sponsor acknowledged Technically the issue is correct, but we're not going to resolve it for XYZ reasons

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@code423n4
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Czar102

Vulnerability details

Impact

The APY of the annualized fee is dependent on the frequency of the execution of the BasketFacet::chargeOutstandingAnnualizedFee(). If it is called more frequently, the compounding is more frequent and the APY is higher. For less used baskets, the APY might be lower, because the compounding will happen at lower rate.

Tools Used

Manual analysis

Recommended Mitigation Steps

Consider calculating the fee as the compounding was continous or with a constant compounding period.
@code423n4 code423n4 added 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working labels Dec 19, 2021
code423n4 added a commit that referenced this issue Dec 19, 2021
@code423n4
Czar102 issue #280
71721ac
@loki-sama loki-sama added the sponsor acknowledged Technically the issue is correct, but we're not going to resolve it for XYZ reasons label Dec 22, 2021
@0xleastwood
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Nice find!

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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working sponsor acknowledged Technically the issue is correct, but we're not going to resolve it for XYZ reasons
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@loki-sama @0xleastwood @code423n4