Omniscia Bonq Audit

stability-pool Static Analysis Findings

stability-pool Static Analysis Findings

STA-01S: Inexistent Sanitization of Input Addresses

Description:

The linked function(s) accept address arguments yet do not properly sanitize them.

Impact:

The presence of zero-value addresses, especially in constructor implementations, can cause the contract to be permanently inoperable. These checks are advised as zero-value inputs are a common side-effect of off-chain software related bugs.

Example:

contracts/stability-pool.sol
115constructor(address _factory, address _bonqToken) {
116 factory = ITroveFactory(_factory);
117 stableCoin = IMintableToken(address(factory.stableCoin()));
118 bonqToken = IERC20(_bonqToken);
119}

Recommendation:

We advise some basic sanitization to be put in place by ensuring that each address specified is non-zero.

Alleviation:

The Bonq Protocol team has introduced sufficient checks validating that the input addresses cannot be zero.

STA-02S: Improper Invocations of EIP-20 transfer / transferFrom

Description:

The linked statements do not properly validate the returned bool values of the EIP-20 standard transfer & transferFrom functions. As the standard dictates, callers must not assume that false is never returned.

Impact:

If the code mandates that the returned bool is true, this will cause incompatibility with tokens such as USDT / Tether as no such bool is returned to be evaluated causing the check to fail at all times. On the other hand, if the token utilized can return a false value under certain conditions but the code does not validate it, the contract itself can be compromised as having received / sent funds that it never did.

Example:

contracts/stability-pool.sol
127stableCoin.transferFrom(msg.sender, address(this), _amount);

Recommendation:

Since not all standardized tokens are EIP-20 compliant (such as Tether / USDT), we advise a safe wrapper library to be utilized instead such as SafeERC20 by OpenZeppelin to opportunistically validate the returned bool only if it exists in each instance.

Alleviation:

The Bonq Protocol team has introduced the usage of OpenZeppelin's SafeERC20 library for collateralToken invocations but not for bonqToken and stableCoin.