Checklists/EVM/Liquidity Pool Security

Liquidity Pool Security Checklist

Deep-dive security checks for DeFi liquidity pools. 35 security checks derived from 3,663 real audit findings. Covering pool creation, deposit/withdrawal, LP token accounting, impermanent loss, concentrated liquidity, rewards, and pool state management.

Threat Analysis

Key statistics from analyzing 3,663 audit findings:

3,663 findings analyzed from real smart contract audits across major DeFi protocols

35 vulnerability patterns identified and categorized across 7 security domains

26 Critical/High items require immediate attention in any audit

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Showing 35 of 35 vulnerabilities
#1

Pool Initialization Logic Flaws

High

Improper pool initialization can lead to manipulation, unusability, or utilization rate overflow

#2

Pool Initialization Front-Running

High

Malicious actors can manipulate pool parameters during initialization through front-running attacks

#3

Factory Owner Can Steal Router-Approved Funds

High

Factory owner can drain user funds approved to the router contract via malicious pool creation

#4

Round-Trip Swap Token Gain

High

Users can gain tokens during round-trip swaps due to math library bugs in pool invariant

#5

Pool Creation with Invalid Parameters

Medium

Pools can be created with incorrect or malicious initial values leading to exploitation

#6

Improper State Handling in Partial Redemptions

High

Partial redemption requests can be exploited to steal assets due to improper state management

#7

Incorrect Liquidity Accounting After Withdrawals

High

Force withdrawal or emergency exit functions fail to update total liquidity correctly

#8

Access Control Bypass in Token Operations

High

Malicious actors exploit improper access controls to manipulate deposit/withdrawal token operations

#9

Withdrawal Denial of Service

High

Malicious users can permanently block withdrawals by exploiting deposit/withdrawal logic

#10

Liquidity Removal Blocked During Pool Disable

High

Users cannot withdraw liquidity when pools are disabled, trapping funds during emergencies

#11

LP Token Share Inflation Attack

High

First depositor can manipulate share-to-asset ratio through donation attacks

#12

LP Token Supply Inconsistency

High

Total supply changes without proper LP token accounting updates cause pricing drift

#13

LP Token Pricing Manipulation via Flash Loans

High

LP token pricing vulnerable to flashloan or slot0 manipulation attacks

#14

Incorrect Fee Application in LP Logic

Medium

Fee logic applies fees to wrong assets or at wrong stages, causing incorrect LP pricing

#15

Token Balance Manipulation During Rebalancing

High

Attacker can drain funds by manipulating token balances during rebalancing operations

#16

Incorrect LP Token Accounting Formulas

High

Flawed mathematical formulas or invariants in LP token calculations cause fund loss

#17

Liquidity Cooldown Manipulation

High

Malicious users can keep others in liquidity cooldown indefinitely via small deposits

#18

Implied Volatility Manipulation in Liquidity Parameters

High

IV can be decreased without cost due to rounding errors in liquidity calculations

#19

Incorrect Token Reserve Updates on Burn

High

Burning liquidity positions fails to properly decrement token reserves

#20

Incorrect Liquidity Delta Handling in Swaps

Medium

Liquidity adjustments not properly reflected in swap simulation vs actual execution

#21

Unchecked Array Growth in Tick Tracking

Medium

Unbounded array growth in tick tracking can brick liquidity operations

#22

Incorrect Reward Calculation Logic

High

Flawed arithmetic or stale balance data in reward distribution leads to over/under-payment

#23

Reward Distribution Timing Vulnerabilities

High

Improper handling of reward timing causes inflation, trapping, or front-running of rewards

#24

Reward Theft via Recovery Functions

High

Token managers can exploit recoverERC20 or similar functions to steal reward tokens

#25

Unrestricted Critical Parameter Modification

High

Contract owner can change critical parameters like exchange rates and fees without restrictions

#26

Uncontrolled Ownership Transfer

High

Ownership can be transferred to an arbitrary address without confirmation or safeguards

#27

Price Manipulation via Direct Token Transfers

High

Direct token transfers can manipulate pool prices without triggering swap logic

#28

Incorrect Share Accounting in Pool Operations

High

Flawed share accounting during swaps, rolls, or fee collection leads to incorrect balances

#29

Incorrect Liquidation Price Calculations

High

Flawed liquidation price computation leads to improper liquidations or undercollateralized positions

#30

Incorrect Token Amount Scaling

High

Swap functions return unscaled token amounts, causing users to receive fewer tokens than expected

#31

Unvalidated Curve Cuts Enable Arbitrage

High

Missing validation for curve parameters enables creation of invalid liquidity curves

#32

IL Protection Mechanism Exploitation

High

Impermanent loss protection can be exploited to drain reserve funds

#33

Unrestricted AMM Parameter Updates

Medium

Abrupt changes to critical AMM parameters like amplification factor without safeguards

#34

Missing LP Validation in Fee Distribution

High

Fee distribution logic fails to verify LP existence before allocation

#35

Flash Loan Manipulation of LP Interest Rates

High

Flash loans can manipulate stable interest rates and pool rates, amplifying LP losses

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