Submitted by 0xAsen, rvierdiiev, pks27, TheSchnilch, kz0213871, nervouspika, 0xhacksmithh. Selected submission by: pks27.

Relevant GitHub Links

https://github.com/Cyfrin/2023-10-SteadeFi/blob/0f909e2f0917cb9ad02986f631d622376510abec/contracts/strategy/gmx/GMXCompound.sol#L127-L136

Summary

Incorrect state transition may cause vault in stuck under processCompoundCancellation scenario.

Vulnerability Details

When keeper execute compound action and GMXCallback return afterDepositCancellation action, then protocol will call GMXCompound#processCompoundCancellation function to change vault status.

However, vault status is changed to GMXTypes.Status.Compound_Failed instead of GMXTypes.Status.Open by GMXCompound#processCompoundCancellation function, which is different with document described below:

https://github.com/Cyfrin/2023-10-SteadeFi/blob/main/docs/sequences/strategy-gmx-compound-sequence-detailed.md

and

All scenarios should be handled to ensure vault eventually returns to an Open status. Consider how a scenario might lead to a stuck vault (other statuses).

Impact

Vault may stuck in unexpected state after processCompoundCancellation action.

Tools Used

vscode, Manual Review

Recommendations

Change the vault status to Open instead of Compound_Failed when call GMXCompound#processCompoundCancellation function.