Security firm Debaub has identified a critical vulnerability in Uniswap’s smart contract.
The company received a $40,000 “bug bounty” award from Uniswap after detecting the vulnerability.
Debaub Detected Vulnerability
The vulnerability found by the firm was found in the UniversalRouter contract, a new technology that allows Uniswap users to swap multiple tokens for NFTs in a single transaction.
In a statement on Twitter, Debaub said the vulnerability may have allowed someone to apply third-party code during a transfer and steal funds.
Yannis Smaragdakis, founder of the company, said:
“Obviously UniversalRouter should not hold any balance during transactions. Otherwise, anyone can seize these funds.”
The UniversalRouter contract can execute several operation commands in succession, which allows to improve the user experience. Debaub revealed that the contract does not have something known as a re-entry lock, which prevents hackers from issuing additional commands during the transfer that could allow them to steal funds.
The company said that when they first found the vulnerability, they received $40,000 worth of USDC, which was approved by the Uniswap team.