051.md

moneyversed

medium

Vulnerability to sandwich attacks

Summary

Due to the open nature of the protocol and lack of countermeasures, the protocol may be vulnerable to sandwich attacks, allowing attackers to manipulate the order book and exploit arbitrage opportunities.

Vulnerability Detail

The CollateralManager.sol contract, along with the entire Teller Protocol, might be susceptible to sandwich attacks due to the open nature of the protocol and lack of countermeasures. This vulnerability could allow attackers to manipulate the order book and exploit arbitrage opportunities, leading to potential losses for users.

Impact

Potential losses for users due to sandwich attacks and manipulation of the order book.

Code Snippet

https://github.com/sherlock-audit/2023-03-teller/blob/main/teller-protocol-v2/packages/contracts/contracts/CollateralManager.sol#L1

Tool used

Manual Review

Recommendation

Consider implementing countermeasures, such as a commit-reveal scheme, to protect against sandwich attacks and ensure a fair and secure trading environment for users.