LayerZero-Specific Vulnerabilities in Airdropped Gas and Failure Handling

LayerZero enables cross-chain communication between blockchain networks by providing a secure, trust-minimized messaging system. However, when integrating with LayerZero, there are several potential vulnerabilities related to how gas is handled during cross-chain operations, especially in scenarios involving failure. These vulnerabilities can lead to stuck gas, the unintended use of leftover gas by other users, or even potential gas drains by malicious actors.

In this tutorial, we will explore the type of vulnerabilities that arise when protocols using LayerZero do not properly handle airdropped gas and failure scenarios. These issues are specific to LayerZero’s gas management mechanisms, and understanding them is crucial for secure integration.


Airdropped Gas and Failure Handling in LayerZero

How LayerZero Airdropped Gas Works

In LayerZero, gas is sometimes “airdropped” to the receiving chain to ensure that cross-chain transactions have enough gas to complete. This airdrop of gas allows the receiving contract to perform operations such as processing the message or calling back the source chain for further actions.

However, if a transaction fails after the gas is airdropped, the leftover gas can remain stuck in the contract, potentially creating vulnerabilities. Specifically:

  • Gas may remain in the contract and be used by subsequent transactions or callers.

  • Malicious actors could exploit the system to drain the gas or use it for purposes other than intended.

  • Users may lose gas if there is no mechanism to refund or reclaim airdropped gas in case of failure.

These vulnerabilities occur due to the lack of fallback mechanisms or proper handling of failure scenarios, where airdropped gas is not safely refunded or reallocated.


Type of Vulnerability: Stuck or Unused Airdropped Gas

One of the primary vulnerabilities in LayerZero integrations involves gas being stuck or unused in contracts after a transaction fails. This happens when LayerZero airdrops gas to a receiving contract for message processing, but the operation fails, leaving the gas locked in the contract without any mechanisms to reclaim it.

Example Scenario:

Consider a situation where LayerZero sends gas to a contract on a destination chain to process a cross-chain message. If the transaction fails due to an issue on the destination chain (e.g., contract logic error or out-of-gas scenario), the gas remains stuck in the contract. In the worst case, malicious users can exploit this by calling other functions that use the leftover gas, effectively draining the contract of its funds.

  • Step-by-step breakdown:

    1. Airdropped gas: Gas is sent by LayerZero to a contract to execute cross-chain logic.

    2. Transaction failure: The cross-chain transaction fails for various reasons (e.g., incorrect logic, relayer issues).

    3. Stuck gas: The gas remains in the contract and does not get refunded to the sender or reallocated.

    4. Exploitation: Subsequent callers or malicious users may be able to use this gas inappropriately, depleting it from the contract.


Malicious Gas Drains Due to Unhandled Failure

Another related vulnerability occurs when leftover gas can be drained by malicious users after the system fails to handle the fallback mechanism. In some cases, LayerZero uses a fallback mechanism to attempt recovering failed cross-chain transactions. If this fallback also fails, the leftover gas remains vulnerable.

Example Scenario:

Suppose a contract attempts to process a message, and the transaction fails, triggering a fallback function. If the fallback function itself fails (due to a lack of payable addresses or insufficient gas), malicious users can later invoke other functions that exploit the gas left in the contract. This allows attackers to drain gas that should have been refunded or sent elsewhere safely.

  • Step-by-step breakdown:

    1. Airdropped gas: Gas is sent to a destination chain contract.

    2. Transaction failure: The transaction fails and a fallback mechanism is triggered.

    3. Fallback failure: The fallback mechanism fails to execute properly, leaving gas in the contract.

    4. Malicious exploitation: A malicious user calls functions that take advantage of the leftover gas, draining it from the contract.


Example Vulnerabilities in LayerZero Integrations

  1. Airdropped Gas Remains in the Contract in Case of Failure: In certain cases, gas sent by LayerZero to the receiving contract remains in the contract after a failed transaction. If not properly handled, this gas can be used by other callers, potentially leading to unintended behavior or exploitation.

    • Impact: Gas remains in the contract and can be used by subsequent callers, leading to unintended gas consumption and potential financial loss for the original sender.

    • Solution: Implement fallback mechanisms that refund or securely reallocate any remaining gas when a transaction fails.

  2. Gas Sent by LayerZero Gets Stuck in the Contract: When gas is sent from the source chain to the destination chain and the transaction fails, the airdropped gas may become stuck in the destination chain’s contract. In some cases, the gas is not refunded to the original user, and other users may be able to exploit it.

    • Impact: Users may lose gas, and malicious actors could use the remaining gas for their own benefit.

    • Solution: Add logic to ensure that in case of failure, any leftover gas is either refunded to the sender or sent to a safe recipient.

  3. Fallback Failure Leading to Gas Drains: If a fallback mechanism fails, the leftover gas remains in the contract and becomes vulnerable to exploitation by malicious users. In this case, the attacker could trigger other functions to use the leftover gas, leading to a potential gas drain attack.

    • Impact: Malicious users can drain the remaining gas in the contract, potentially leading to significant financial loss.

    • Solution: Ensure that fallback mechanisms are robust and include logic to securely handle any leftover gas in the event of failure.


Mitigation Strategies

To avoid vulnerabilities related to airdropped gas and failure handling in LayerZero integrations, developers should follow these best practices:

1. Implement Proper Fallback Mechanisms

Ensure that fallback mechanisms are correctly implemented to handle failure scenarios where gas remains in the contract. Fallback mechanisms should:

  • Refund the leftover gas to the sender or designated recipient.

  • Avoid leaving gas in the contract where it can be exploited by subsequent callers.

  • Include robust error-handling logic to prevent failures in the fallback itself.

2. Monitor and Safeguard Gas Balances

Set up monitoring mechanisms to track the gas balance in contracts that interact with LayerZero. Contracts should be designed to prevent the unintended use of leftover gas and ensure that any remaining gas is safely returned to the user or sent to a designated safe address.

3. Test Failure Scenarios

Conduct thorough testing under various failure conditions, such as message delivery failures, relayer issues, or out-of-gas scenarios, to ensure that the contract handles these situations appropriately. This testing should focus on ensuring that gas is refunded or securely transferred in all failure cases.

4. Use Payable Addresses in Fallbacks

Ensure that fallback functions that deal with gas refunds or reallocations use payable addresses to prevent issues where the fallback fails due to a non-payable recipient. This ensures that any gas refunds are properly sent to the correct recipient.


Conclusion

Vulnerabilities related to airdropped gas and failure handling are a critical concern for protocols integrating with LayerZero. Without proper fallback mechanisms and failure handling logic, gas can become stuck in contracts, leading to potential exploitation by malicious actors. By implementing robust fallback systems, monitoring gas balances, and thoroughly testing failure scenarios, developers can secure their LayerZero-based protocols and prevent gas-related vulnerabilities from impacting users.

LayerZero integrations require careful handling of cross-chain gas operations to ensure that contracts remain secure even when transactions fail. With proper mitigation strategies, these vulnerabilities can be effectively addressed, ensuring the security and reliability of cross-chain communication.

Last updated