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ERC721 TRANSFERFROM() MIGHT LEAD TO USER LOSING FUNDS #277

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code423n4 opened this issue May 14, 2022 · 1 comment
Closed

ERC721 TRANSFERFROM() MIGHT LEAD TO USER LOSING FUNDS #277

code423n4 opened this issue May 14, 2022 · 1 comment
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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working duplicate This issue or pull request already exists sponsor confirmed Sponsor agrees this is a problem and intends to fix it (OK to use w/ "disagree with severity")

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Lines of code

https://github.com/code-423n4/2022-05-cally/blob/1849f9ee12434038aa80753266ce6a2f2b082c59/contracts/src/Cally.sol#L258
https://github.com/code-423n4/2022-05-cally/blob/1849f9ee12434038aa80753266ce6a2f2b082c59/contracts/src/Cally.sol#L318

Vulnerability details

ERC721 TRANSFERFROM() MIGHT LEAD TO USER LOSING FUNDS

In exercise() and withdraw(), the ERC721 transferFrom() method is used to transfer the premium asset from the contract to the caller. If the caller is a contract that has not implemented the onERC721Received method properly, the NFT could be locked.

Impact

Medium

Proof Of Concept

Instances include:

line 258 and
line 318

Tools Used

Manual Analysis

Recommended Mitigation Steps

use OZ's safeTransferFrom() instead of TransferFrom(). This way, if someone uses a contract to buy the call option and that contract has not implemented the ERC721 Receiving method properly, the execute() function will revert.
@code423n4 code423n4 added 2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working labels May 14, 2022
code423n4 added a commit that referenced this issue May 14, 2022
@code423n4
joestakey issue #277
ea2a5ec
@outdoteth outdoteth added the sponsor confirmed Sponsor agrees this is a problem and intends to fix it (OK to use w/ "disagree with severity") label May 15, 2022
@outdoteth
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use safeTransferFrom to prevent stuck NFTs: #38

@outdoteth outdoteth added the duplicate This issue or pull request already exists label May 15, 2022
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2 (Med Risk) Assets not at direct risk, but function/availability of the protocol could be impacted or leak value bug Something isn't working duplicate This issue or pull request already exists sponsor confirmed Sponsor agrees this is a problem and intends to fix it (OK to use w/ "disagree with severity")
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