L-31·

High gas use risk from `Uniswap V3` quoter

Not reportedoptionsleverageblack-scholes

TL;DR

The PositionInteractionFacet contract uses Uniswap V3's quoter contract for on-chain price calculations during position exercises and liquidations.

Severity

LOW

Method

MManual review

CAT.

The PositionInteractionFacet contract uses Uniswap V3's quoter contract for on-chain price calculations during position exercises and liquidations. As noted in Uniswap's documentation, these quoter functions are not designed for on-chain use due to their high gas consumption.

The issue is present in the _swapAssetToAsset function:

solidity

function _swapAssetToAsset(
    address assetIn,
    address assetOut,
    uint256 amountOut
) internal returns (uint256 amountIn) {
    PoolStorage.Layout storage strg = PoolStorage.layout();
    PoolStorage.Dex memory dex = strg.setUp.base.dex;

    // Gas-intensive quote operation
    IQuoterV2.QuoteExactOutputSingleParams memory quoteParams = IQuoterV2.QuoteExactOutputSingleParams({
        tokenIn: assetIn,
        tokenOut: assetOut,
        amount: amountOut,
        fee: dex.dexFee,
        sqrtPriceLimitX96: 0
    });
    (uint256 amountInMaximum,,,) = IQuoterV2(dex.dexQuoter).quoteExactOutputSingle(quoteParams);

    // Swap execution
    IV3SwapRouter.ExactOutputSingleParams memory params = IV3SwapRouter.ExactOutputSingleParams({
        tokenIn: assetIn,
        tokenOut: assetOut,
        fee: dex.dexFee,
        recipient: address(this),
        deadline: block.timestamp + 30 minutes,
        amountOut: amountOut,
        amountInMaximum: amountInMaximum,
        sqrtPriceLimitX96: 0
    });

    amountIn = IV3SwapRouter(dex.dexRouter).exactOutputSingle(params);
}

This implementation is problematic for several reasons:

The quoter functions simulate the entire swap path to calculate prices, making them extremely gas-intensive.
These functions are explicitly not designed for on-chain use according to Uniswap's documentation.
The quotes are used in critical position management functions (exercise/liquidation).

The risk is particularly high because position exercises/liquidations are most likely to occur during volatile market conditions, which are exactly the conditions where gas costs are highest.

Recommendations:

Use an oracle-based approach for price calculations.
Alternatively, implement optimistic execution with reasonable bounds.

02Section · Report provenance

Report provenance

Published by Pashov Audit Group, with Carlos (Bloqarl) participating as a contractor. The source report states that its fixes review was not fully completed; no final remediation disposition is recorded for this finding. Read the full report.