msg.sender is unchecked in exercise(), which can cause user's NFT to be frozen #3
Labels
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")
Lines of code
https://github.com/code-423n4/2022-05-cally/blob/1849f9ee12434038aa80753266ce6a2f2b082c59/contracts/src/Cally.sol#L294-L295
Vulnerability details
Impact
The msg.sender will receive the NFT when exercise() is called. However, if msg.sender is a contract address that does not support ERC721, the NFT can be frozen in the contract.
As per the documentation of EIP-721:
A wallet/broker/auction application MUST implement the wallet interface if it will accept safe transfers.
Ref: https://eips.ethereum.org/EIPS/eip-721
Proof of Concept
https://github.com/code-423n4/2022-05-cally/blob/1849f9ee12434038aa80753266ce6a2f2b082c59/contracts/src/Cally.sol#L294-L295
Tools Used
None
Recommended Mitigation Steps
Use safeTransferFrom instead of transferFrom
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