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moneyversed

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Possible Front-Running Vulnerability

Summary

The SwapUtils.sol contract is potentially vulnerable to front-running attacks since it doesn't use any mechanisms to mitigate them.

Vulnerability Detail

Front-running attacks occur when an attacker observes a pending transaction and quickly submits another transaction with a higher gas price, allowing their transaction to be processed first. This could allow the attacker to manipulate the order of transactions and potentially profit from them.

In the swap function of SwapUtils.sol, there are no safeguards implemented to prevent front-running attacks. An attacker may monitor pending transactions and submit their own transactions with higher gas prices to benefit from the price difference.

Impact

If an attacker successfully performs a front-running attack, they can potentially profit at the expense of other users. This may lead to a loss of user trust and could negatively impact the protocol's reputation.

Code Snippet

https://github.com/sherlock-audit/2023-04-gmx/blob/main/gmx-synthetics/contracts/swap/SwapUtils.sol#L100

Tool used

Manual Review

Recommendation

To mitigate front-running attacks, consider implementing mechanisms such as batch auctions or commit-reveal schemes. These methods help ensure that transactions are processed fairly and reduce the potential for attackers to profit from front-running.