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ERC-2771 integration introduces address spoofing vulnerability — OpenZeppelin

ERC-2771 integration introduces address spoofing vulnerability — OpenZeppelin

Soon after Thirdweb revealed a security vulnerability that could impact a variety of common smart contracts used across the Web3 ecosystem, OpenZeppelin identified two specific standards as the root cause of the threat.

On Dec. 4, Thirdweb reported a vulnerability in a commonly used open-source library, which could impact pre-built contracts, including DropERC20, ERC721, ERC1155 (all versions), and AirdropERC20.

In response, smart contracts development platform OpenZepplin and NFT marketplaces Coinbase NFT and OpenSea proactively informed users about the threat. Upon further investigation, OpenZepplin found that the vulnerability stems from “a problematic integration of two specific standards: ERC-2771 and Multicall.”

The smart contract vulnerability in question arises after the integration of ERC-2771 and Multicall standards. OpenZepplin identified 13 sets of vulnerable smart contracts, as shown below. However, crypto service providers are advised to address the issue before bad actors find a way to exploit the vulnerability.

Smart contract vulnerabilities linked to ERC-2771 integration. Source: Thirdweb

OpenZepplin’s investigation found that the ERC-2771 standard allows the overriding of certain call functions. This could be exploited to extract the sender’s address information and spoof calls on their behalf.

An attacker can potentially wrap multiple spoofed calls within a single multicall(bytes[]). Source: OpenZeppelin

OpenZepplin advised the Web3 community using the aforementioned integrations to use a 4-step method for ensuring safety — disable every trusted forwarder, pause contract and revoke approvals, prepare an upgrade and evaluate snapshot options.

In addition, Thirdweb launched a mitigation tool that allows users to connect their wallets and identify if a contract is vulnerable.

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