Sushi Swap New Routing Contract Bug - Revision history

Azoundria: Another 30 minutes complete.

2023-05-17T18:19:26Z

Another 30 minutes complete.

← Older revision		Revision as of 12:19, 17 May 2023
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	== About Sushi Swap ==		== About Sushi Swap ==
			Smart Contract: <ref name=":3">[https://etherscan.io/address/0x044b75f554b886a065b9567891e45c79542d7357 Affected SushiSwap Smart Contract (RouteProcessor2) - Etherscan] (May 17, 2023)</ref>

	<ref name="kraken-10770" /><ref name="sushi-10769" /><ref name="sushi-10768" />		<ref name="kraken-10770" /><ref name="sushi-10769" /><ref name="sushi-10768" />

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	\|Exploit Transaction		\|Exploit Transaction
	\|A transaction occurred exploiting the Sushi Swap contract<ref name="etherscan-10762" />.		\|A transaction occurred exploiting the Sushi Swap contract<ref name="etherscan-10762" />.
			\|-
			\|April 8th, 2023 9:36:00 PM MDT
			\|PeckShield Analysis Published
			\|PeckShield analysis is published on Twitter<ref name=":4">[https://twitter.com/peckshield/status/1644907207530774530 PeckShield - "It seems the @SushiSwap RouterProcessor2 contact has an approve-related bug, which leads to the loss of >$3.3M loss (about 1800 eth) from @0xSifu." - Twitter] (May 17, 2023)</ref>.
	\|-		\|-
	\|April 9th, 2023 8:03:00 AM MDT		\|April 9th, 2023 8:03:00 AM MDT
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	== Technical Details ==		== Technical Details ==
	~~This section includes specific detailed~~ technical analysis of ~~any security breaches which happened~~. ~~What specific software vulnerabilities contributed to~~ the ~~problem~~ and ~~how were they exploited?~~		The exploit affected a smart contract called RouteProcessor2 <ref name=":3" />.

			=== PeckShield Technical Analysis ===
			PeckShield shared a technical analysis about the exploit<ref name=":4" />. An example hack transaction was also provided<ref name="etherscan-10762" />.<blockquote>It seems the @SushiSwap RouterProcessor2 contact has an approve-related bug, which leads to the loss of >$3.3M loss (about 1800 eth) from @0xSifu. If you have approved [the affected smart contract]…, please REVOKE ASAP!</blockquote>

			=== 0xFoobar Technical Analysis ===
			0xFoobar shared a technical analysis. Though the original Tweet has been removed, an excerpt is still available in the Rekt article<ref name="rektnews-10761" />.<blockquote>SushiSwap router exploit comes from a bad callback. Although the line 328 comment is correct, line 340 does not check the pool deployer. So you can impersonate a V3Pool, do a no-op swap, call safeTransferFrom on an arbitrary ERC20 and arbitrary <code>from</code> address on line 347</blockquote>

			=== Ernestognw.eth Technical Analysis ===
			There is a more detailed analysis available by ernestognw.eth, however the link on Rekt is broken<ref name="rektnews-10761" />. TBD

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ultimate Outcome ==		== Ultimate Outcome ==
	~~What~~ was ~~the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?~~<blockquote></blockquote>		The smart contract which was affected has been removed.<blockquote></blockquote>

	== Total Amount Recovered ==		== Total Amount Recovered ==
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	<references>		<references>
	<ref name="rektnews-10761">[https://rekt.news/sushi-yoink-rekt/ Rekt - SushiSwap - REKT] (May 3, 2023)</ref>		<ref name="rektnews-10761">[https://rekt.news/sushi-yoink-rekt/ Rekt - SushiSwap - REKT] (May 3, 2023)</ref>
	<ref name="etherscan-10762">[https://etherscan.io/tx/0xea3480f1f1d1f0b32283f8f282ce16403fe22ede35c0b71a732193e56c5c45e8 ~~Ethereum~~ Exploit ~~Transaction~~ - Etherscan] (May 3, 2023)</ref>		<ref name="etherscan-10762">[https://etherscan.io/tx/0xea3480f1f1d1f0b32283f8f282ce16403fe22ede35c0b71a732193e56c5c45e8 One of the SushiSwap Exploit Transactions - Etherscan] (May 3, 2023)</ref>
	<ref name="rektnews-10763">[https://rekt.news/sushiswap-grey-area/ Rekt - Sushiswap's Grey area] (May 3, 2023)</ref>		<ref name="rektnews-10763">[https://rekt.news/sushiswap-grey-area/ Rekt - Sushiswap's Grey area] (May 3, 2023)</ref>
	<ref name="sushiforum-10764">[https://forum.sushi.com/t/head-chef-jared-greys-official-sec-statement-faq/11918 Head Chef Jared Grey's Official SEC Statement & FAQ - General Discussion - Sushi Swap] (May 3, 2023)</ref>		<ref name="sushiforum-10764">[https://forum.sushi.com/t/head-chef-jared-greys-official-sec-statement-faq/11918 Head Chef Jared Grey's Official SEC Statement & FAQ - General Discussion - Sushi Swap] (May 3, 2023)</ref>

Azoundria: More editing of the wiki article.

2023-05-17T18:03:23Z

Azoundria: Initial 30 minutes. All sources integrated.

2023-05-03T19:36:54Z

Initial 30 minutes. All sources integrated.

Show changes

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/sushiswapnewroutingcontractbug.php}} {{Unattributed Sources}} Sushi SwapSushi is a decentralized exchange (DEX) that allows users to trade cryptocurrencies without the need for a central operator administrator. Users can buy and sell across 11,700 cryptocurrency pairs and trade tokens across ten crypto networks. Sushi’s products include a decentralized exchange, a de..."

2023-05-03T19:19:22Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/sushiswapnewroutingcontractbug.php}} {{Unattributed Sources}} thumb|Sushi SwapSushi is a decentralized exchange (DEX) that allows users to trade cryptocurrencies without the need for a central operator administrator. Users can buy and sell across 11,700 cryptocurrency pairs and trade tokens across ten crypto networks. Sushi’s products include a decentralized exchange, a de..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/sushiswapnewroutingcontractbug.php}}
{{Unattributed Sources}}

[[File:Sushiswap.jpg|thumb|Sushi Swap]]Sushi is a decentralized exchange (DEX) that allows users to trade cryptocurrencies without the need for a central operator administrator. Users can buy and sell across 11,700 cryptocurrency pairs and trade tokens across ten crypto networks. Sushi’s products include a decentralized exchange, a decentralized lending market, yield instruments, an auction platform, an AMM framework, and a payroll solution for vesting and streaming. The platform maintains decentralized governance of $SUSH token holders, while the day-to-day operations are done by a core team. However, over $3.3 million was stolen from SushiSwap users via a new routing contract. The attacker was able to create a fake Univ3 pool and drain tokens from any address which had approved it. Although the damage wasn't enormous or particularly widespread, this incident is a bad look for an already-embattled protocol.

This is a global/international case not involving a specific country.<ref name="rektnews-10761" /><ref name="etherscan-10762" /><ref name="rektnews-10763" /><ref name="sushiforum-10764" /><ref name="0xriptidetwitter-10765" /><ref name="jaredgreytwitter-10766" /><ref name="sushiforum-10767" /><ref name="sushi-10768" /><ref name="sushi-10769" /><ref name="kraken-10770" />

== About Sushi Swap ==
"Buy and Sell Instantly on Sushi. Whenever. No registration needed. Over 400 tokens to trade at your fingertips."

"Sushi is a Decentralized Exchange (DEX) we aim to be a one-stop shop for all your decentralized finance (DeFi) needs. Sushi allows users to trade cryptocurrencies without the need for a central operator administrator, using their own preferred connected crypto wallet. Users can buy and sell across 11,700 cryptocurrency pairs and trade tokens across ten crypto networks (and counting) via the newly launched cross-chain swap (SushiXSwap). Next to trading you can: earn, stack yields, lend, borrow, leverage all on one decentralized, community driven platform."

"Sushi’s products are configured in a way that allows the entire platform to maintain decentralized governance of $SUSH token holders, while continuing to innovate on the collective foundations by design. Whereas major structural changes are voted on by the community, the day-to-day operations, rebalancing of pools and ratios, business strategy and overall development implementation is done by a core team.

Thus far, the core products, include:

a decentralized exchange (Swap)
a decentralized lending market (Kashi)
yield instruments (Onsen)
an auction platform (Miso)
an AMM framework (Trident)
and a payroll solutions for vesting and streaming (Furo)"

"Your keys, your coins. Own your own crypto, just like cash in your wallet. Fully decentralized & self custody of your funds means your money in your wallet, as it should be."

"Move assets across networks in seconds. We will always find you the best rate, no matter what network you’re on, with no extra fees."

"Earn passive income with your coins. With multiple ways to passively earn yield on your coins, you can choose your own yield stack and make your money work for you, all in the background, 24/7."

"Over $3.3M was stolen from SushiSwap users over the weekend via a new routing contract.

All users who had approved Sushi’s 4 day old RouteProcessor2 contract at the time of the incident, were at risk, across 14 chains.

Sushi Head Chef, Jared Grey, acknowledged the bug, urging users to revoke approvals. He later stated that the protocol is now safe to use, and the exploited contract has been removed, as well as promising a full post-mortem on events.

Amongst the chaos, DeFi’s favourite villain got rekt for 1800 ETH, and there was plenty of whitehacking activity.

One user claimed to have targeted 0xSifu as a whitehat, though the attempt appeared to have been botched, with only 100 ETH eventually returned. BlockSec also got involved, adding to their impressive list of recent whitehacks.

Luckily, the days-old contract had relatively few approvers, and this didn’t turn out to be the AMM-ageddon it could have been."

"The new contract contained the function, processRoute, which is insufficiently protected against accepting arbitrary data.

The attacker was able to create a fake Univ3 pool, and insert their own contract address in place of a genuine liquidity pool. During the uniswapV3SwapCallback function, the contract is then able to drain (or 'yoink') tokens from any address which had approved it."

"SushiSwap router exploit comes from a bad callback. Although the line 328 comment is correct, line 340 does not check the pool deployer. So you can impersonate a V3Pool, do a no-op swap, call safeTransferFrom on an arbitrary ERC20 and arbitrary from address on line 347"

"The damage wasn’t enourmous, nor particularly widespread. Users were either drained or revoked quickly, and whitehat efforts certainly helped to soften the PR blow."

"But this is a bad look for an already-embattled protocol, nonetheless."

"Grey receiving an SEC subpoena, criticism of a paltry bug bounty programme, and large operating expenses (including 500k for Grey himself)...

It appears the drama is far from over for Sushi."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:
* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - Sushi Swap New Routing Contract Bug
!Date
!Event
!Description
|-
|April 8th, 2023 8:35:23 PM MDT
|Exploit Transaction
|Transaction occurred exploiting the Sushi Swap contract.
|}

== Technical Details ==
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

== Total Amount Lost ==
The total amount lost has been estimated at $3,300,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== Individual Prevention Policies ==
{{Prevention:Individuals:Placeholder}}

{{Prevention:Individuals:End}}

== Platform Prevention Policies ==
{{Prevention:Platforms:Placeholder}}

{{Prevention:Platforms:End}}

== Regulatory Prevention Policies ==
{{Prevention:Regulators:Placeholder}}

{{Prevention:Regulators:End}}

== References ==
<references><ref name="rektnews-10761">[https://rekt.news/sushi-yoink-rekt/ Rekt - SushiSwap - REKT] (May 3, 2023)</ref>

<ref name="etherscan-10762">[https://etherscan.io/tx/0xea3480f1f1d1f0b32283f8f282ce16403fe22ede35c0b71a732193e56c5c45e8 Ethereum Transaction Hash (Txhash) Details | Etherscan] (May 3, 2023)</ref>

<ref name="rektnews-10763">[https://rekt.news/sushiswap-grey-area/ Rekt - Sushiswap's Grey area] (May 3, 2023)</ref>

<ref name="sushiforum-10764">[https://forum.sushi.com/t/head-chef-jared-greys-official-sec-statement-faq/11918 Head Chef Jared Grey's Official SEC Statement & FAQ - General Discussion - Sushi Swap] (May 3, 2023)</ref>

<ref name="0xriptidetwitter-10765">[https://twitter.com/0xriptide/status/1645106409594314752 @0xriptide Twitter] (May 3, 2023)</ref>

<ref name="jaredgreytwitter-10766">[https://twitter.com/jaredgrey/status/1602701300520652800 @jaredgrey Twitter] (May 3, 2023)</ref>

<ref name="sushiforum-10767">[https://forum.sushi.com/t/remove-jared-grey-as-head-chef/11892 Remove Jared Grey as Head Chef - Proposals - Sushi Swap] (May 3, 2023)</ref>

<ref name="sushi-10768">[https://www.sushi.com/ Sushi | Sushi] (May 3, 2023)</ref>

<ref name="sushi-10769">[https://www.sushi.com/academy/articles/what-is-sushi What Is Sushi? | Sushi Academy] (May 3, 2023)</ref>

<ref name="kraken-10770">[https://www.kraken.com/learn/what-is-sushiswap-sushi https://www.kraken.com/learn/what-is-sushiswap-sushi] (May 3, 2023)</ref></references>