033.md

moneyversed

medium

Insufficient checks for ERC20 token compatibility

Summary

There is a lack of checks in place to ensure that the ERC20 tokens used for the principal and collateral are compatible with the protocol's assumptions. This could lead to potential issues with rebasing tokens or other non-standard tokens.

Vulnerability Detail

The Teller Protocol V2 does not perform sufficient compatibility checks for ERC20 tokens used as principal or collateral. As a result, non-standard tokens, such as rebasing tokens, could potentially cause unintended behavior and exploits within the protocol.

Impact

The use of non-standard ERC20 tokens could lead to unintended behavior and potential exploits, compromising the security and integrity of the platform.

Code Snippet

https://github.com/sherlock-audit/2023-03-teller/blob/main/teller-protocol-v2/packages/contracts/contracts/TellerV2.sol#L8

Tool used

Manual Review

Recommendation

Implement comprehensive compatibility checks for ERC20 tokens used as principal or collateral within the protocol. Ensure that non-standard tokens, such as rebasing tokens, are either properly handled or restricted to prevent potential issues and exploits.