Error due to divison could make CollateralTracker.sol:s_ITMSpreadFee equal to zero

[c4-bot-1]

Lines of code

https://github.com/code-423n4/2024-04-panoptic/blob/main/contracts/CollateralTracker.sol#L121
https://github.com/code-423n4/2024-04-panoptic/blob/main/contracts/CollateralTracker.sol#L249
https://github.com/code-423n4/2024-04-panoptic/blob/main/contracts/CollateralTracker.sol#L262
https://github.com/code-423n4/2024-04-panoptic/blob/main/contracts/CollateralTracker.sol#L1110

Vulnerability details

Vulnerability Details

Currently uniswap has 4 fee tier

• 1.00% - 10000
• 0.3% - 3000
• 0.05% - 500
• 0.01% - 100

The 0.01% fee tier is currently the lowest fee tier on uniswap, it was added through a governance vote in Nov 2021. In summary Uniswap fees can go below 100 and when this happens the CollateralTracker.sol:s_ITMSpreadFee will become zero for that pool.

    function startToken(
        bool underlyingIsToken0,
        address token0,
        address token1,
        uint24 fee,
        PanopticPool panopticPool
    ) external {
        ...
        uint24 _poolFee;
        //@audit pool fee can be accidentally set to zero
        unchecked {
@->         _poolFee = fee / 100;
        }
        s_poolFee = _poolFee;

        // Stores the addresses of the underlying tracked tokens.
        s_univ3token0 = token0;
        s_univ3token1 = token1;

        // store whether the current collateral token is token0 (true) or token1 (false; since there's always exactly two tokens it could be)
        s_underlyingIsToken0 = underlyingIsToken0;

        // Additional risk premium charged on intrinsic value of ITM positions
        unchecked {
@->          s_ITMSpreadFee = uint128((ITM_SPREAD_MULTIPLIER * _poolFee) / DECIMALS);
        }
    }

_poolFee will evaluate to zero if fee is less than 100, since s_ITMSpreadFee is calculated based on _poolFee it will evaluate to zero too.

s_ITMSpreadFee = uint128((ITM_SPREAD_MULTIPLIER * _poolFee) / DECIMALS);

Impact

Swap commission will not be paid for affected pools

Proof of Concept

Deploying a pool with fee tier less than 100 i.e 0.01%.

When the PanopticFactory.sol:deployNewPool is called with a fee of let say 50,
it calls the collateralTracker0.startToken(true, token0, token1, fee, newPoolContract) with the fee amount. This is where the division happens and the CollateralTracker.sol:s_ITMSpreadFee get stored as zero

Tool Used

Manual Analysis

Recommendation

Donot divide the fee by 100, use the direct value instead.

Assessed type

Error

[c4-judge]

Picodes marked the issue as duplicate of #469

[c4-judge]

Picodes marked the issue as satisfactory