Potential inconsistent state in LendingTermOffboarding can lead to redemptions remaining paused forever

[c4-bot-8]

Lines of code

https://github.com/code-423n4/2023-12-ethereumcreditguild/blob/main/src/governance/LendingTermOffboarding.sol#L154
https://github.com/code-423n4/2023-12-ethereumcreditguild/blob/main/src/governance/LendingTermOffboarding.sol#L191-L195

Vulnerability details

Impact

The LendingTermOffboarding contract has a potential issue that could lead to an inconsistent state in the system. This inconsistency could brick redemptions and disrupt the normal functioning of the lending term offboarding process.

The issue arises when a lending term is offboarded and then immediately re-onboarded without the cleanup() function being called. This would allow anyone to immediately offboard the term again, leading to an incorrect value in nOffboardingsInProgress. This would in turn block the unpausing of redemptions in the PSM as the nOffboardingsInProgress variable could not be decreased down to 0 again.

Proof of Concept

Consider the following sequence of events:

1. A LendingTerm is offboarded with the intention of calling all loans and immediately re-onboarding it (due to e.g. some loans being so old that the interest accrued brings them close to being underwater)
2. The LendingTerm is immediately re-onboarded.
3. No one calls the cleanup() function during the time it is being offboarded.
4. Since canOffboard[term] is still true, anyone can call the offboard() function again.
5. This adds the term to the _deprecatedGauges set again and increases nOffboardingsInProgress to 2.
6. Now, cleanup() can only be called once as canOffboard[term] will be false on subsequent calls, which makes it impossible to unpause redemptions in the PSM.

https://github.com/code-423n4/2023-12-ethereumcreditguild/blob/main/src/governance/LendingTermOffboarding.sol#L154
https://github.com/code-423n4/2023-12-ethereumcreditguild/blob/main/src/governance/LendingTermOffboarding.sol#L191-L195

Tools Used

Manual review

Recommended Mitigation Steps

To mitigate this issue, consider adding a check in the proposeOnboard() function to ensure that a term cannot be re-onboarded if it hasn't been cleaned up. This could be done by checking if LendingTermOffboarding.canOffboard[term] is false before allowing the term to be onboarded.

Assessed type

Other

[c4-pre-sort]

0xSorryNotSorry marked the issue as sufficient quality report

[c4-pre-sort]

0xSorryNotSorry marked the issue as duplicate of #1147

[c4-judge]

Trumpero marked the issue as duplicate of #1141

[c4-judge]

Trumpero marked the issue as satisfactory

[c4-judge]

Trumpero changed the severity to 2 (Med Risk)