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GHSA-hqf9-8xv5-x8xw

GHSA-hqf9-8xv5-x8xw: ERC7984ERC20Wrapper: once a wrapper is filled, subsequent wrap requests do not revert and result in loss of funds.

Impact

The ERC7984 contract tracks total supply using a confidential euint64 value. If a call to the internal _mint function would result in the total supply overflowing, the call fails silently. The wrap and onTransferReceived functions in ERC7984ERC20Wrapper assume that _mint won't fail silently and do not check the return value. If the mint function fails silently, users do not receive the confidential wrapped token but still send the underlying token, resulting in a loss of funds.

By default (without overriding rate(), the wrapper fills up after wrapping ~18.4 trillion tokens. There are very few tokens of value with sufficient total supply to result in the filling of the wrapper. That said, we recommend upgrading to 0.3.1 to remove this issue.

Patches

This issue has been patched in the 0.3.1 release.

(GitHub Advisory)

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GHSA-hqf9-8xv5-x8xw

GHSA-hqf9-8xv5-x8xw:

N/A

CVSS Score

-

CVSS Score

Basic Information

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Technical Details

Package Name	Ecosystem	Vulnerable Versions	First Patched Version
@openzeppelin/confidential-contracts	npm	<= 0.3.0	0.3.1

Technical Details

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Miggo AI

Root Cause Analysis

The vulnerability exists in the ERC7984ERC20Wrapper contract, which allows wrapping of standard ERC20 tokens into confidential tokens. The core issue is a silent integer overflow. The total supply of the confidential token is tracked by an encrypted 64-bit unsigned integer (euint64). When a user tries to wrap more tokens than the contract can support, causing the total supply to exceed the maximum value for a 64-bit integer, the internal _mint function fails silently instead of reverting the transaction.

The wrap and onTransferReceived functions in ERC7984ERC20Wrapper were identified as the vulnerable entry points. These functions would take the user's underlying tokens but would not verify if the subsequent minting of confidential tokens was successful. In the case of an overflow, the user's funds would be lost.

The patch, identified in commit c620d4386021dde63ae3ea1507dee8543791134a, addresses this by overriding the _update function, which is a part of the minting process. The new implementation adds a crucial check (_checkConfidentialTotalSupply) that runs before minting (from == address(0)). This check calculates the potential total supply and explicitly reverts the transaction if an overflow would occur, thus preventing the loss of funds.

Vulnerable functions

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WAF Protection Rules

WAF Rule

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Reasoning

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