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momo - Morphol.sol functions are public hence non-validated isetToken.sol can lead to Stolen Funds #56

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sherlock-admin3 opened this issue Oct 21, 2024 · 0 comments

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sherlock-admin3 commented Oct 21, 2024

momo

High

Morphol.sol functions are public hence non-validated isetToken.sol can lead to Stolen Funds

Summary

morpho.sol has all its functions as external. function getSupplyCollateralCalldata, function invokeSupplyCollateral,function getBorrowCalldata function invokeBorrow, function getWithdrawCollateralCalldata, function invokeWithdrawCollateral function invokeRepay,
a malicious actor can deploy a malicious isetToken.sol. and front-run an actual transaction that deposits asset and shares that into the actual isetToken.solsimply because it is not validated.

I1. malicious actor deploys a contract that implements the ISetToken interface but contains harmful logic
2. when a honest user calls any function in morpho.sol , he frontruns it so as to achieve;
Redirecting of Funds: The malicious contract could redirect borrowed assets to an unintended
address or drain funds.
Manipulate State: They could manipulate the state of the lending protocol in a way that benefits
them at the expense of other users or the protocol itself.
Reentrancy Attacks: the malicious contract calls back into the Morpho library and can claim ownership roles, completely hacking the protocol

PoC

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Mitigation

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@sherlock-admin2 sherlock-admin2 changed the title Sparkly Fleece Mammoth - Morphol.sol functions are public hence non-validated isetToken.sol can lead to Stolen Funds momo - Morphol.sol functions are public hence non-validated isetToken.sol can lead to Stolen Funds Oct 28, 2024
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