Zokyo Auditing Tutorials
  • 🔐Zokyo Auditing Tutorials
  • 📚Tutorials
    • 🏃Tutorial 1: Front-Running
      • 🚀Prerequisites
      • 📘Understanding Front-Running
      • 👓Examples
      • ⚒️Mitigation Steps
      • 🏦Resource Bank to more front running examples
      • 🤝Front-Running Conclusion
    • 🧱Tutorial 2: Unsafe Casting
      • 🚀Prerequisites
      • 📘Understanding Casting
      • 👓Examples
      • 🤝Unsafe Casting Conclusion
    • 👍Tutorial 3: Approvals and Safe Approvals
      • 🚀Prerequisites
      • 📘Understanding Approvals
      • 👓Vulnerability Examples
        • 🔁ERC20 Approval Reset Requirement
        • 😴Ignoring Return Values from ERC20 approve() Function: Potential Miscount of Successful Approvals
        • 🚫Improper use of Open Zeppelins safeApprove() for Non-zero Allowance Increments
        • 🥾Omitted Approval for Contract Interactions Within a Protocol
        • 🤦‍♂️Failing to Reset Token Approvals in Case of Failed Transactions or other actions
        • 💭Miscellaneous
        • ERC20 Approve Race Condition Vulnerability
      • ⚒️Spot the Vulnerability
      • 🤝Approvals and Safe Approvals Conclusion
    • ⛓️Tutorial 4: Block.chainid, DOMAIN_SEPARATOR and EIP-2612 permit
      • 🚀Prerequisites
      • 📘Understanding Block.chainid and DOMAIN_SEPARATOR
      • 👓Examples
      • ⚒️General Mitigation Steps
      • 🤝Tutorial 4 Conclusion
  • 💰Tutorial 5: Fee-On-Transfer Tokens
    • 🚀Prerequisites
    • 📘Understanding Fee-On-Transfer
    • 👓Examples
    • 📘Links to more fee-on-transfer vulnerability examples
    • 🤝Fee-On-Transfer Tokens: Conclusion
  • 🌴Tutorial 6: Merkle Trees
    • 🚀Prerequisites
    • 📘Understanding Merkle Trees
    • 🔎Verification within a Merkle Tree:
    • 📜Merkle Proofs Within Smart Contracts
    • 🖋️Merkle Proof Solidity Implementation
    • 🛑Vulnerabilities When Using Merkle Trees
    • 💀Example Vulnerabilities
    • 🧠Exercise
    • 🤝Merkle Trees Conclusion
  • 🌳Tutorial 7: Merkle-Patricia Trees
    • 🚀Prerequisites
    • 📘Understanding Merkle-Patricia Trees
    • 📕Understanding Merkle-Patrica Trees pt.2
    • 🔎Verification within a Merkle-Patricia Tree
    • 🛑Vulnerabilities When Using Merkle-Patricia Trees
    • 💀Example Vulnerability
    • 🤝Merkle-Patricia Trees: Conclusion
  • 🔁Tutorial 8: Reentrancy
    • 🚀Prerequisites
    • 📘Understanding Reentrancy
    • ⚒️Mitigation
    • 💀The DAO Hack: An In-depth Examination
    • 👓Examples
    • 🏦Resource Bank To More Reentrancy Examples
    • 🤝Conclusion: Reflecting on the Reentrancy Vulnerability
  • 🔂Tutorial 9: Read-Only Reentrancy
    • 🚀Prerequisites
    • 📘Understanding Read-Only Reentrancy
    • 🔨Mitigating Read-Only Reentrancy
    • 👓Real World Examples
    • 🏦Resource Bank To More Reentrancy Examples
    • 🤝Read-Only Reentrancy: Conclusion
  • 🚆Tutorial 10: ERC20 transfer() and safeTransfer()
    • 🚀Prerequisites
    • 📘Understanding ERC20 transfer() and safeTransfer()
    • 👓Examples
    • 🤝Conclusion
  • 📞Tutorial 11: Low level .call(), .transfer() and .send()
    • 🚀Prerequisites
    • 📘Understanding .call, .transfer, and .send
    • 🛑Understanding the Vulnerabilities of .transfer and .send
    • 👓Examples
    • 🤝Low level .call(), .transfer() and .send() conclusion
  • ☎️Tutorial 12: Delegatecall Vulnerabilities in Precompiled Contracts
    • 🚀Prerequisites
    • 📳Understanding Delegatecall
    • ⛰️EVM, L2s, Bridges, and the Quest for Scalability
    • 🏗️Understanding Precompiles in the Ethereum Virtual Machine (EVM)
    • 💻Custom Precompiles
    • 💀Potential Vulnerabilities in EVM Implementations: Overlooked DelegateCall in Precompiled Contracts
    • 👓Real World Examples
    • 🤝Delegatecall and Precompiles: Conclusion
  • 🌊Tutorial 13: Liquid Staking
    • 🚀Prerequisites
    • 📘Understanding Liquid Staking
    • 💀Understanding Liquid Staking Vulnerabilities
    • 🛑Example Vulnerability
    • 🐜Example Vulnerability 2
    • 🕷️Example Vulnerability 3
    • 🤝Liquid Staking: Conclusion
  • 🚿Tutorial 14: Slippage
    • 🚀Prerequisites
    • 📘Understanding Slippage in Automated Market Makers (AMMs)
    • 💀Understanding the "Lack of Slippage Check" Vulnerability in Automated Market Makers (AMMs) and DEXs
    • 😡On-Chain Slippage Calculations Vulnerability
    • 📛0 slippage tolerance vulnerability
    • 👓Real World Examples
    • 🏦Resource bank to more slippage vulnerabilities
    • 🤝Slippage Conclusion
  • 📉Tutorial 15: Oracles
    • 🚀Prerequisites
    • 📘Understanding Oracles
    • 📈Types of price feeds
    • 😡Flash Loans
    • 💀Understanding Oracle Vulnerabilities
      • ⛓️The Danger of Single Oracle Dependence
      • ⬇️Using Deprecated Functions
      • ❌Lack of return data validation
      • 🕐Inconsistent or Absent Price Data Fetching/Updating Intervals
    • 🔫Decentralized Exchange (DEX) Price Oracles Vulnerabilities
    • 🛑Found Vulnerabilities In Oracle Implementations
      • ⚖️Newly Registered Assets Skew Consultation Results
      • ⚡Flash-Loan Oracle Manipulations
      • ⛓️Relying Only On Chainlink: PriceOracle Does Not Filter Price Feed Outliers
      • ✍️Not Validating Return Data e.g Chainlink: (lastestRoundData)
      • 🗯️Chainlink: Using latestAnswer instead of latestRoundData
      • 😭Reliance On Fetching Oracle Functionality
      • 🎱Wrong Assumption of 18 decimals
      • 🧀Stale Prices
      • 0️⃣Oracle Price Returning 0
      • 🛶TWAP Oracles
      • 😖Wrong Token Order In Return Value
      • 🏗️miscellaneous
    • 🤝Oracles: Conclusion
  • 🧠Tutorial 16: Zero Knowledge (ZK)
    • 🚀Prerequisites
    • 📚Theory
      • 🔌Circom
      • 💻Computation
      • 🛤️Arithmetic Circuits
      • 🚧Rank-1 Constraint System (R1CS)
      • ➗Quadratic Arithmetic Program
      • ✏️Linear Interactive Proof
      • ✨ZK-Snarks
    • 🤓Definitions and Essentials
      • 🔑Key
      • 😎Scalar Field Order
      • 🌳Incremental Merkle Tree
      • ✒️ECDSA signature
      • 📨Non-Interactive Proofs
      • 🏝️Fiat-Shamir transformation (or Fiat-Shamir heuristic)
      • 🪶Pedersen commitment
    • 💀Common Vulnerabilities in ZK Code
      • ⛓️Under-constrained Circuits
      • ❗Nondeterministic Circuits
      • 🌊Arithmetic Over/Under Flows
      • 🍂Mismatching Bit Lengths
      • 🌪️Unused Public Inputs Optimized Out
      • 🥶Frozen Heart: Forging of Zero Knowledge Proofs
      • 🚰Trusted Setup Leak
      • ⛔Assigned but not Constrained
    • 🐛Bugs In The Wild
      • 🌳Dark Forest v0.3: Missing Bit Length Check
      • 🔢BigInt: Missing Bit Length Check
      • 🚓Circom-Pairing: Missing Output Check Constraint
      • 🏹Semaphore: Missing Smart Contract Range Check
      • 🔫Zk-Kit: Missing Smart Contract Range Check
      • 🤖Aztec 2.0: Missing Bit Length Check / Nondeterministic Nullifier
      • ⏸️Aztec Plonk Verifier: 0 Bug
      • 🪂0xPARC StealthDrop: Nondeterministic Nullifier
      • 😨a16z ZkDrops: Missing Nullifier Range Check
      • 🤫MACI 1.0: Under-constrained Circuit
      • ❄️Bulletproofs Paper: Frozen Heart
      • 🏔️PlonK: Frozen Heart
      • 💤Zcash: Trusted Setup Leak
      • 🚨14. MiMC Hash: Assigned but not Constrained
      • 🚔PSE & Scroll zkEVM: Missing Overflow Constraint
      • ➡️PSE & Scroll zkEVM: Missing Constraint
      • 🤨Dusk Network: Missing Blinding Factors
      • 🌃EY Nightfall: Missing Nullifier Range Check
      • 🎆Summa: Unconstrained Constants Assignemnt
      • 📌Polygon zkEVM: Missing Remainder Constraint
    • 💿ZK Security Resources
  • 🤝Tutorial 17 DEX's (Decentralized Exchanges)
    • 🚀Prerequisites
    • 📚Understanding Decentralized Exchanges
    • 💀Common Vulnerabilities in DEX Code
      • 🔎The "Lack of Slippage Check" Vulnerability in Automated Market Makers (AMMs) a
      • 😡On-Chain Slippage Calculations Vulnerability
      • 📛Slippage tolerance vulnerability
      • 😵How Pool Implementation Mismatches Pose a Security Risk to Decentralized Exchanges (DEXs)
      • 🏊‍♂️Vulnerabilities in Initial Pool Creation - Liquidity Manipulation Attacks
      • 🛑Vulnerabilities In Oracle Implementations
        • ⚖️Newly Registered Assets Skew Consultation Results
        • ⚡Flash-Loan Oracle Manipulations
        • ⛓️Relying Only On Chainlink: PriceOracle Does Not Filter Price Feed Outliers
        • ✍️Not Validating Return Data e.g Chainlink: (lastestRoundData)
        • 🗯️Chainlink: Using latestAnswer instead of latestRoundData
        • 😭Reliance On Fetching Oracle Functionality
        • 🎱Wrong Assumption of 18 decimals
        • 🧀Stale Prices
        • 0️⃣Oracle Price Returning 0
        • 🛶TWAP Oracles
        • 😖Wrong Token Order In Return Value
        • 🏗️miscellaneous
      • 🥶Minting and Burning Liquidity Pool Tokens
      • 🎫Missing Checks
      • 🔞18 Decimal Assumption
        • 📌Understanding ERC20 Decimals
        • 💀Examples Of Vulnerabilities To Do With Assuming 18 Decimals
      • 🛣️Incorrect Swap Path
      • The Importance of Deadline Checks in Swaps
    • 🤝Conclusion
  • 🤖Tutorial 18: Proxies
    • 🚀Prerequisites
    • 📥Ethereum Storage and Memory
    • 📲Ethereum Calls and Delegate Calls
    • 💪Upgradability Patterns in Ethereum: Enhancing Smart Contracts Over Time
    • 🔝Proxy Upgrade Pattern in Ethereum
    • 🌀Exploring the Landscape of Ethereum Proxies
      • 🪞Transparent Proxies
      • ⬆️UUPS Proxies
      • 💡Beacon Proxies
      • 💎Diamond Proxies
  • 🔞Tutorial 19: 18 Decimal Assumption
    • 🚀Prerequisites
    • 📌Understanding ERC20 Decimals
    • 💀Examples Of Vulnerabilities To Do With Assuming 18 Decimals
    • 🤝Conclusion
  • ➗Tutorial 20: Arithmetic
    • 🚀Prerequisites
    • 🕳️Arithmetic pitfall 1: Division by 0
    • 🔪Arithmetic pitfall 2: Precision Loss Due To Rounding
    • 🥸Arithmetic pitfall 3: Erroneous Calculations
    • 🤝Conclusion
  • 🔁Tutorial 21: Unbounded Loops
    • 🚀Prerequisites
    • ⛽Gas Limit Vulnerability
    • 📨Transaction Failures Within Loops
    • 🤝Conclusion
  • 📔Tutorial 22: `isContract`
    • 🚀Prerequisites
    • 💀Understanding the 'isContract()` vulnerability
    • 🤝Conclusion
  • 💵Tutorial 23: Staking
    • 🚀Prerequisites
    • 💀First Depositor Inflation Attack in Staking Contracts
    • 🌪️Front-Running Rebase Attack (Stepwise Jump in Rewards)
    • ♨️Rugability of a Poorly Implemented recoverERC20 Function in Staking Contracts
    • 😠General Considerations for ERC777 Reentrancy Vulnerabilities
    • 🥏Vulnerability: _lpToken and Reward Token Confusion in Staking Contracts
    • 🌊Slippage Checks
    • 🌽The Harvest Functionality in Vaults: Issues and Best Practices
  • ⛓️Tutorial 24: Chain Re-org Vulnerability
    • 🚀Prerequisites
    • ♻️Chain Reorganization (Re-org) Vulnerability
    • 🧑‍⚖️Chain Re-org Vulnerability in Governance Voting Mechanisms
  • 🌉Tutorial 25: Cross Chain Bridges Vulnerabilities
    • 🚀Prerequisites
    • ♻️ERC777 Bridge Vulnerability: Reentrancy Attack in Token Accounting
      • 🛑Vulnerability: Withdrawals Can Be Locked Forever If Recipient Is a Contract
    • 👛The Dangers of Not Using SafeERC20 for Token Transfers
    • Uninitialized Variable Vulnerability in Upgradeable Smart Contracts
    • Unsafe External Calls and Their Vulnerabilities
    • Signature Replay Attacks in Cross-Chain Protocols
  • 🚰Tutorial 26: Integer Underflow and Overflow Vulnerabilities in Solidity (Before 0.8.0)
    • 🚀Prerequisites
    • 💀Understanding Integer Underflow and Overflow Vulnerabilities
    • 🤝Conclusion
  • 🥏Tutorial 27: OpenZeppelin Vulnerabilities
    • 🚀Prerequisites
    • 🛣️A Guide on Vulnerability Awareness and Management
      • 🤝Conclusion
  • 🖊️Tutorial 28: Signature Vulnerabilities / Replays
    • 🚀Prerequisites
    • 🔏Reusing EIP-712 Signatures in Private Sales
    • 🔁Replay Attacks on Failed Transactions
    • 📃Improper Token Validation in Permit Signature
  • 🤝Tutorial 29: Solmate Vulnerabilities
    • 🔏Lack of Code Size Check in Token Transfer Functions in Solmate
  • 🧱Tutorial 30: Inconsistent block lengths across chains
    • 🕛Incorrect Assumptions about Block Number in Multi-Chain Deployments
  • 💉Tutorial 31: NFT JSON and XSS injection
    • 📜Vulnerability: JSON Injection in tokenURI Functions
    • 📍Cross-Site Scripting (XSS) Vulnerability via SVG Construction in Smart Contracts
  • 🍃Tutorial 32: Merkle Leafs
    • 🖥️Misuse of Merkle Leaf Nodes
  • 0️Tutorial 33: Layer 0
    • 📩Lack of Force Resume in LayerZero Integrations
    • ⛽LayerZero-Specific Vulnerabilities in Airdropped Gas and Failure Handling
    • 🔓Understanding the Vulnerability of Blocking LayerZero Channels
    • 🖊️Copy of Understanding the Vulnerability of Blocking LayerZero Channels
  • ♻️Tutorial 34: Forgetting to Update the Global State in Smart Contracts
  • ‼️Tutorial 35: Wrong Function Signature
  • 🛑Tutorial 36: Handling Edge Cases of Banned Addresses in DeFi
  • Tutorial 37: initializer and onlyInitializing
  • ➗Tutorial 38: Eigen Layer
    • 📩Denial of Service in NodeDelegator Due to EigenLayer's maxPerDeposit Check
    • 📈Incorrect Share Issuance Due to Strategy Updates in EigenLayer Integrations
    • 🔁nonReentrant Vulnerability in EigenLayer Withdrawals
  • ⚫Tutorial 39: Wormhole
    • 📩Proposal Execution Failure Due to Guardian Set Change
  • 💼Tutorial 40: Uniswap V3
    • 📩Understanding and Mitigating Partial Swaps in Uniswap V3
    • 🌊Underflow Vulnerability in Uniswap V3 Position Fee Growth Calculations
    • ➗Handling Decimal Discrepancies in Uniswap V3 Price Calculations
  • 🔢Tutorial 41: Multiple Token Addresses in Proxied Tokens
    • 🔓Understanding Vulnerabilities Arising from Tokens with Multiple Entry Points
  • 🤖Tutorial 42: abiDecoder v2
    • 🥥Vulnerabilities from Manipulated Token Interactions Using ABI Decoding
  • ❓Tutorial 43: On-Chain Randomness
    • Vulnerabilities in On-Chain Randomness and How It Can Be Exploited
  • 😖Tutorial 44: Weird ERC20 Tokens
    • Weird Token List
  • 🔨Tutorial 45: Hardcoded stable coin values
  • ❤️Tutorial 46: The Risks of Chainlink Heartbeat Discrepancies in Smart Contracts
  • 👣Tutorial 47: The Risk of Forgetting a Withdrawal Mechanism in Smart Contracts
  • 💻Tutorial 48: Governance and Voting
    • Flash Loan Voting Exploit
    • Exploiting Self-Delegation
    • 💰Missing payable Keyword in Governance Execute Function
    • 👊Voting Multiple Times by Shifting Delegation
    • 🏑Missing Duplicate Veto Check
  • 📕Tutorial 49: Not Conforming To EIP standards
    • 💎Understanding EIP-2981: NFT Royalty Standard
    • 👍Improper Implementation of EIP-2612 Permit Standard
    • 🔁Vulnerabilities of Missing EIP-155 Replay Attack Protection
    • ➡️Vulnerabilities Due to Missing EIP-1967 in Proxy Contracts
    • 🔓Vulnerability of Design Preventing EIP-165 Extensibility
    • 🎟️The Dangers of Not Properly Implementing ERC-4626 in Yield Vaults
    • 🔁EIP-712 Implementation and Replay Attacks
  • ⏳Tutorial 50: Vesting
    • 🚔Vulnerability of Allowing Unauthorized Withdrawals in Vesting Contracts
    • 👊Vulnerability of Unbounded Timelock Loops in Vesting Contracts
    • ⬆️Vulnerability of Incorrect Linear Vesting Calculations
    • ⛳Missing hasStarted Modifier
    • 🔓Vulnerability in Bond Depositor's Vesting Period Reset
  • ⛽Tutorial 51: Ethereum's 63/64 Gas Rule
    • 🛢️Abusing Ethereum's 63/64 Gas Rule to Manipulate Contract Behavior
  • 📩Tutorial 52: NPM Dependency Confusion and Unclaimed Packages
    • 💎Exploiting Unclaimed NPM Packages and Scopes
  • 🎈Tutorial 53: Airdrops
    • 🛄Claiming on Behalf of Other Users
    • 🧲Repeated Airdrop Claims Vulnerability
    • 🍃Airdrop Vulnerability – Merkle Leaves and Parent Node Hash Collisions
  • 🎯Tutorial 54: Precision
    • 🎁Vulnerabilities Due to Insufficient Precision in Reward Calculations
    • Min-Shares: Fixed Minimum Share Values for Tokens with Low Decimal Precision
    • Vulnerability Due to Incorrect Rounding When the Numerator is Not a Multiple of the Denominator
    • Vulnerability from Small Deposits Being Rounded Down to Zero Shares in Smart Contracts
    • Precision Loss During Withdrawals from Vaults Can Block Token Transfers Due to Value < Amount
    • 18 Decimal Assumption Scaling: Loss of Precision in Asset Conversion Due to Incorrect Scaling
  • Tutorial 55: AssetIn == AssetOut, FromToken == ToToken
    • 🖼️Vulnerability: Missing fromToken != toToken Check
  • 🚿Tutorial 56: Vulnerabilities Related to LP Tokens Being the Same as Reward Tokens
    • 🖼️Vulnerabilities Caused by LP Tokens Being the Same as Reward Tokens
  • Tutorial 57: Unsanitized SWAP Paths and Arbitrary Contract Call Vulnerabilities
    • 📲Arbitrary Contract Calls from Unsanitized Paths
  • Tutorial 58: The Risk of Infinite Approvals and Arbitrary Contract Calls
    • 🪣Exploiting Infinite Approvals and Arbitrary Contract Calls
  • Tutorial 59: Low-Level Calls in Solidity Returning True for Non-Existent Contracts
    • Low-Level Calls Returning True for Non-Existent Contracts
  • 0️⃣Tutorial 60: The Impact of PUSH0 and the Shanghai Hardfork on Cross-Chain Deployments > 0.8.20
    • PUSH0 and Cross-Chain Compatibility Challenges
  • 🐍Tutorial 61: Vyper Vulnerable Versions
    • Vyper and the EVM
  • ⌨️Tutorial 62: Typos in Smart Contracts — The Silent Threat Leading to Interface Mismatch
    • Vyper and the EVM
  • ☁️Tutorial 63: Balance Check Using ==
    • The Vulnerability: == Balance Check
  • 💍Tutorial 64: Equal Royalties for Unequal NFTs
    • Understanding the Problem: Equal Royalties for Unequal NFTs
  • 🖼️Tutorial 65: ERC721 and NFTs
    • The Risk of Using transferFrom Instead of safeTransferFrom in ERC721 Projects
    • ❄️Why _safeMint Should Be Used Instead of _mint in ERC721 Projects
    • The Importance of Validating Token Types in Smart Contracts
    • 📬Implementing ERC721TokenReceiver to Handle ERC721 Safe Transfers
    • NFT Implementation Deviating from ERC721 Standard in Transfer Functions
    • NFT Approval Persistence after Transfer
    • 🎮Gameable NFT Launches through Pseudo-Randomness
    • 2️⃣Protecting Buyers from Losing Funds Due to Claimed NFT Rewards on Secondary Markets
    • ♻️Preventing Reentrancy When Using SafeERC721
    • 🖊️Preventing Re-use of EIP-712 Signatures in NFT Private Sales
  • 2️⃣Tutorial 66: Vulnerability Arising from NFTs Supporting Both ERC721 and ERC1155 Standards
  • 📷Tutorial 67: ERC1155 Vulnerabilities
    • ♻️Preventing Reentrancy in OpenZeppelin's SafeERC1155
    • 🛫Vulnerabilities in OpenZeppelin's ERC1155Supply Contract
    • Understanding Incorrect Token Owner Enumeration in ERC1155Enumerable
    • Avoiding Breaking ERC1155 Composability with Improper safeTransferFrom Implementation
    • 💍Ensuring Compatibility with EIP-2981 in ERC1155 Contracts
  • 🪟Informational Vulnerabilities
  • ⛽Gas Efficiency
  • 💻Automation Tools
  • 🔜Out Of Gas (Coming Soon)
  • 🔜DEX Aggregators (Coming Soon)
  • 🔜Bribes (Coming Soon)
  • 🔜Understanding Compiled Bytecode (coming soon)
  • 🔜Deployment Mistakes (coming soon)
  • 🔜Optimistic Roll-ups (coming soon)
  • 🔜Typos (coming soon)
  • 🔜Try-Catch (coming soon)
  • 🔜NFT Market-place (coming soon)
  • 🔜Upgrade-able Contracts (coming soon)
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  1. Tutorial 25: Cross Chain Bridges Vulnerabilities

Unsafe External Calls and Their Vulnerabilities

In smart contract development, especially in decentralized finance (DeFi) and cross-chain protocols, making external calls is often necessary. However, unsafe external calls—especially those made to user-controlled addresses or with unvalidated calldata—can open the door to some of the largest exploits ever seen in the blockchain space. One of the most notable examples is the Poly Network hack of August 2021, where $611 million was drained due to a vulnerability involving an unsafe external call.

In this section, we will explore the mechanics behind unsafe external calls, the risks they pose, and how to implement secure practices to prevent similar vulnerabilities in your smart contracts.


Understanding Unsafe External Calls

An external call occurs when a smart contract interacts with another contract or an external address. External calls are fundamental to blockchain protocols, but they come with risks, especially when a contract makes an external call without verifying the recipient address or ensuring the calldata is safe.

The danger lies in the fact that once a contract makes an external call, it loses control over execution flow, especially if the recipient is a malicious contract. Attackers can exploit this lack of control to re-enter the calling contract, modify state variables, or execute unintended logic.


How the Poly Network Hack Happened

The Poly Network hack is a prime example of how unsafe external calls can lead to devastating results. Poly Network, a cross-chain protocol that connected 35 different blockchains, was hacked for $611 million through a vulnerability in its EthCrossChainManager contract.

Vulnerability Breakdown:

  • The EthCrossChainManager was a privileged contract responsible for verifying cross-chain transactions.

  • It contained a function called verifyHeaderAndExecuteTx that validated transactions and then called another internal function: _executeCrossChainTx.

  • _executeCrossChainTx made an external call to a variable _toContract, which was user-controlled—any user could pass in the contract address they wanted.

  • No validation checks were implemented to ensure that the external call was being made to a legitimate or trusted contract.

  • Additionally, _toContract accepted a custom _method variable (user-controlled calldata) that allowed users to execute arbitrary logic on the external contract.

The vulnerability came from the fact that any user could manipulate the _toContract and _method variables to force the privileged EthCrossChainManager to make external calls to any contract with any calldata.

Attack Flow:

  1. Arbitrary Contract Call: The attacker passed in a malicious contract address to _toContract, and in the _method variable, they brute-forced the correct calldata that would allow them to bypass security checks and execute privileged functions in the target contract.

  2. Privileged Contract Exploitation: The attacker tricked the EthCrossChainManager into calling another Poly Network contract—EthCrossChainData. By passing in malicious calldata, they successfully called the function putCurEpochConPubKeyBytes, which allowed them to drain funds.

  3. Complete Fund Drain: Once the attacker gained control of this function, they were able to manipulate the contract and drain over $600 million worth of assets.


Why External Calls Are Dangerous

  1. Loss of Control: When a contract makes an external call, control of execution flow is handed over to the external contract. If the recipient contract is malicious or poorly designed, it can manipulate the calling contract’s state.

  2. Reentrancy Attacks: Unchecked external calls can lead to reentrancy attacks, where the recipient contract re-enters the calling contract and executes code multiple times before the original call is finished.

  3. Custom Calldata Exploits: As in the Poly Network example, allowing user-controlled calldata without validation can lead to attackers executing arbitrary functions, bypassing security checks.


Best Practices to Mitigate Unsafe External Call Vulnerabilities

To avoid falling victim to vulnerabilities like those seen in the Poly Network hack, it is essential to follow best practices when making external calls in smart contracts.

1. Validate External Contract Addresses

Always ensure that external calls are only made to trusted and validated contract addresses. Avoid accepting user-controlled contract addresses unless absolutely necessary.

Use SafeERC20 for Token Transfers

If transferring tokens during an external call, use safe transfer methods such as OpenZeppelin’s SafeERC20 to ensure that the target contract is properly verified and the transfer executes correctly.

Limit User-Provided Data

Be cautious when accepting user-controlled calldata or function selectors. If you must allow custom data, validate that the calldata aligns with the contract’s intended functionality.

Use Reentrancy Guards

Protect your contract’s functions with a reentrancy guard to ensure that external calls cannot re-enter your contract and modify state unexpectedly.

Check Return Values

Always check the return values of external calls to ensure that the call was successful and executed as expected. If the call fails or returns false, revert the transaction.

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Last updated 7 months ago

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