https://github.com/shabarkin/writing-exercise

Spearbit General Information

Spearbook: Audit Process - HackMD

https://docs.spearbit.com/how-spearbit-works/security-researchers-and-apprentices

Wallet Protocol Business Requirments

You are given an implementation for a smart contract wallet. There are two contracts

  1. [Implementation.sol](<https://github.com/shabarkin/writing-exercise/blob/develop/contracts/Implementation.sol>): Deployed once and used as implementation contract in Proxy.sol.
  2. [Proxy.sol](<https://github.com/shabarkin/writing-exercise/blob/develop/contracts/Proxy.sol>): Each user has a unique Proxy deployment with the above implementation. This is a simply proxy contract which delegatecalls the implementation contract. It has an access control check that allows only the owner to use the fallback function.

The idea is that users can keep their funds, for example, ETH or ERC20 tokens in the Proxy. To use these funds, users can execute arbitrary calls and arbitrary delegatecalls by using the implementation contract (it has callContract and delegatecallContract). The implementation contract is deployed only once and reused to save gas.

Implementation deletion causes DoS of users proxy contracts

Severity: Critical

Impact: An attacker could delete the Implementation contract deployed for user proxy contracts. All users funds deposited to their Proxy contracts could be stuck forever without any option to withdraw.

Context: Implementation.sol#L9-L22

While reviewing the Proxy and Implementation smart contracts I have observed that Implementation contract is defined as a normal deployable smart contract, this allows an attacker to cause the denial of service (DoS) attack for all users of Proxy contract. By application business requirment users should have ability to execute arbitrary call and arbitrary delegatecall functions by using their Implementation contract, however the current architecture implementation has a side affect.

The delegatecall function preserves the state of the calling smart contract, but executes logic of the called smart contract/library. In this architecture the Implementation smart contract is deployed as independent smart contract, what means that anyone within the Ethereum network could invoke their functions.

By deploying the malicious smart contract with a function, which defines selfdestruct operation, allows an attacker to "selfdelete" the Implementation contract. This may happen, because Implementation.delegatecallContract function uses delegatecall operation on the arbitrary address and arbitrary calldata. It will execute the logic of malicious function within the state of the Implementation contract, what means that the selfdectruct operation will be executed within the state of Implementation contract.

The DoS attack is achieved, because there will be no way to update the address of Implementation of Proxy contract or to withdraw user funds. Upon deletion of Implementation contract, all users funds holded within Proxy contracts will be stuck there forever.

The development and test running were completed with Foundry framework.