Rewards - Bug Bounties
Logic error in the handling of a check that verifies if the Strategy contract has enough balance to even complete the flashloan taken from MMVault.
Days in Operation:
Whitehat CKK Sec disclosed a critical vulnerability in Mushrooms Finance to Immunefi that consisted of a logic error, leading to a flash loan attack vector that could have resulted in the loss of 19 wBTC, which at market rate at the time of the report comes out to $635,000.
After receiving the report, Mushrooms Finance paused the contracts and is paying the whitehat a bounty of $60,000 for his find, $18,000 of which went to the Immunefi Whitehat Scholarship.
The vulnerability exists as a result of the interaction between two contracts in Mushrooms Finance: StrategyCmpdWbtcV1 (Strategy) and the MMVault (Vault). The Strategy contract has a flashloan function, mushroomsFlashloan(), that can be called by any user, which liquidates the held wBTC cTokens from Compound and supplies that wBTC to the Vault. This is obviously erroneous due to its original purpose for MMVault callback only. What this means is that an attacker can flashloan from the Vault and repay it via a vulnerable function present in Strategy.
Mushrooms Finance shut its door in May 16, 2022 according to https://blog.mushrooms.finance/farewell-to-mushrooms-dd798c144247
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