ParetoSmartWalletChecker Manual Review Findings

PSW-01M: Potential Manipulation of Code Hash

Type	Severity	Location
Logical Fault		ParetoSmartWalletChecker.sol:L99

Description:

The ParetoSmartWalletChecker::check function meant to be integrated by ve8020 tokens will evaluate a wallet's access authorization through its codehash.

The EIP-7702 standard has introduced a way for accounts to effectively spoof any codehash they wish temporarily, rendering this type of access gating to be insecure.

Impact:

The current codehash based access authorization mechanism is insecure as the hash of an account can be manipulated via EIP-7702.

Example:

Copy
95/// @notice Implementation of the SmartWalletChecker interface used by VotingEscrow
96/// @param wallet Address of the smart contract wallet to check
97/// @return True if the wallet is allowed, false otherwise
98function check(address wallet) external view returns (bool) {
99  return allowAllSmartContracts || smartWalletAllowed[wallet] || allowedCodeHashes[wallet.codehash];
100}

Recommendation:

We advise the Pareto team to evaluate this and potentially remove codehash based access authorization from the contract.

Alleviation:

After extensive discussions with the Pareto team, we concluded that they wish to acknowledge this particular risk.