euler-swap

Description

In the FundsLib contract, the transfer of tokens to the protocol fee recipient is performed using the standard ERC-20 transfer() function:

IERC20(asset).transfer(p.protocolFeeRecipient, protocolFeeAmount);

This approach assumes compliance with the ERC-20 specification, including the return of a boolean success value. However, many tokens in the Ethereum ecosystem, such as USDT and others, do not strictly follow the ERC-20 standard and either do not return a value or behave inconsistently.

Recommendation

Replace the use of IERC20(asset).transfer(...) with OpenZeppelin’s SafeERC20.safeTransfer(...), which safely handles non-compliant tokens by suppressing return value decoding and inferring success from the absence of reverts. This wrapper ensures maximum compatibility across token implementations.

Euler: Fixed in PR#74.

Cantina: Verified.

Description

In the EulerSwap swap logic, the call to CurveLib.f is made with an incorrect ordering of parameters during the evaluation of the post-swap state. The function f() is defined to compute a new reserve value based on the curve. However, the EulerSwap contract incorrectly inverts the order of px and py in some branches of its logic:

- yNew = CurveLib.f(xNew, py, px, y0, x0, cx);+ yNew = CurveLib.f(xNew, px, py, x0, y0, cx);

This misordering distorts the price weight applied in the curve’s internal calculations, leading to incorrect reserve updates and swap results that violate the intended AMM curve. Specifically, this causes inconsistencies in the swap symmetry: when executing an exact-out swap followed by an exact-in reversal using the same token pair and path, the system fails to return to the original state — demonstrating loss or unintended gain.

This error was clearly observed in simulated outputs. For instance, under the following parameter set:

priceX = 1priceY = 2x0 = 1000y0 = 1000cX = 0.8cY = 0.8reserve0 = 1000reserve1 = 1000amount = 500asset0IsInput = FalseexactIn = False

The uncorrected logic produced:

Starting reserves: (1000, 1000)New Reserve: (500.00, 2200.00)Output: 1200.00

Attempting to reverse this swap using exact input 1200 with exactIn = True should have brought the reserves back to (1000,1000). Instead, the incorrect computation yielded:

New Reserve: (106.11, 2200.00) Output: 893.89

This asymmetry stems from misaligned price parameters in the curve formula. After correcting the line the outputs aligned as expected. The output of the exact-out leg becomes:

New Reserve: (500.00, 1300.50) Output: 300.50

and the exact-in reversal with amount = 300 restores the reserves to:

New Reserve: (500.00, 1300.00)Output: 500.00

This confirms that the pricing logic and reserve transitions now obey the intended curve dynamics and yield symmetry across swap paths.

Visual validation using the provided plot script (see below) further illustrates the discrepancy. The invalid version of the logic plots a destination point far outside the feasible curve region:

Whereas the corrected computation yields a valid, curve-consistent transition:

Recommendation

All calls to CurveLib.f() and CurveLib.fInverse() must be carefully reviewed to ensure that parameters are passed in the correct order, specifically:

- yNew = CurveLib.f(xNew, py, px, y0, x0, cx);+ yNew = CurveLib.f(xNew, px, py, x0, y0, cx);

In particular, care must be taken when switching between x-based and y-based flows to ensure that price tokens and reserve coordinates are not accidentally flipped. Consider isolating the curve application logic into well-named wrapper functions that enforce correct parameter order depending on swap direction, reducing the surface area for future human error.

Further, add test cases and simulation plots that validate the invertibility of swaps under various exact-in/exact-out scenarios across curve segments. Plotting the reserve trajectory with respect to the invariant is highly recommended for debugging and internal QA.

Euler: Fixed in PR#67

Cantina: Verified.

Context:

• EulerSwapFactory.sol#L152-L156
• EulerSwapFactory.sol#L189-L192
• EulerSwapFactory.sol#L178-L179

Description:

When deploying a new pool, the index of the pool's address in the allPools and poolMap arrays are stored:

eulerAccountState[eulerAccount] = EulerAccountState({    pool: newOperator,    allPoolsIndex: uint48(allPools.length),    poolMapIndex: uint48(poolMapArray.length)});

When uninstalling a pool with uninstall(), swapAndPop() is used to remove pool addresses from the allPools/poolMap array:

function swapAndPop(address[] storage arr, uint256 index) internal {    arr[index] = arr[arr.length - 1];    arr.pop();}

However, this causes the index stored in eulerAccountState for the last pool address to become incorrect.

For example:

• Assume two pools are installed, so allPools = [0x11, 0x22]
• For the second pool, allPoolsIndex = 1
• The first pool is uninstalled, so allPools = [0x22]
• Since allPoolsIndex is not updated, it is now invalid.

When the second pool is uninstalled, it will remove the wrong index in the allPools array. As a result, it will be impossible for accounts to uninstall pools.

The following PoC demonstrates how the second pool cannot be uninstalled due to an OOB access:

// SPDX-License-Identifier: GPL-2.0-or-laterpragma solidity ^0.8.24;
import "forge-std/Test.sol";import {EulerSwapTestBase, IEulerSwap} from "test/EulerSwapTestBase.t.sol";
contract EulerSwapFactoryTest is EulerSwapTestBase {    function test_multipleUninstalls() public {        // Users        address alice = makeAddr("alice");        address bob = makeAddr("bob");                // Parameters for deployPool()        IEulerSwap.Params memory params = getEulerSwapParams(1e18, 1e18, 1e18, 1e18, 0, 0, 0, 0, address(0));        IEulerSwap.InitialState memory initialState = IEulerSwap.InitialState(1e18, 1e18);        bytes32 salt = bytes32(0);
        // Deploy pool for Alice        params.eulerAccount = alice;        address alicePool = eulerSwapFactory.computePoolAddress(params, salt);        vm.startPrank(alice);        evc.setAccountOperator(alice, alicePool, true);        eulerSwapFactory.deployPool(params, initialState, salt);
        // Deploy pool for Bob        params.eulerAccount = bob;        address bobPool = eulerSwapFactory.computePoolAddress(params, salt);        vm.startPrank(bob);        evc.setAccountOperator(bob, bobPool, true);        eulerSwapFactory.deployPool(params, initialState, salt);
        // Uninstall pool for Alice        vm.startPrank(alice);        evc.setAccountOperator(alice, alicePool, false);        eulerSwapFactory.uninstallPool();
        // Uninstalling pool for Bob reverts due to an OOB access of the allPools array        vm.startPrank(bob);        evc.setAccountOperator(bob, bobPool, false);        vm.expectRevert(stdError.indexOOBError);        eulerSwapFactory.uninstallPool();    }}

Recommendation:

Consider storing pools with OpenZeppelin's EnumerableSet instead of arrays. The pools can be removed from the set based on their address instead of index.

Euler: Fixed in PR 66.

Cantina: Verified, the recommendation has been implemented.

Description

In the UniswapHook contract, the _beforeSwap() function is invoked as a pre-swap hook in the EulerSwap architecture. Within this function, important mutable state — specifically s.reserve0 and s.reserve1 — is accessed and potentially acted upon. Simultaneously, the main EulerSwap.swap() function does not follow a strict checks-effects-interactions pattern: it invokes the uniswapV2Call callback before updating the reserve values.

This ordering opens a subtle but dangerous surface for re-entrancy attacks via Uniswap-style flash loan callbacks. Since s.reserve0 and s.reserve1 are only written after the callback returns, a malicious contract could re-enter swap() from within uniswapV2Call() and trigger _beforeSwap() again with the stale reserves — possibly manipulating them further, creating inconsistencies, or even circumventing pricing invariants.

While no concrete exploit has been identified in the current implementation, this behavior creates an attack surface for reserve desynchronization or double-usage, especially when interacting with other composable DeFi primitives (e.g., nested swaps, lending hooks, callbacks with delegatecall, etc.).

Recommendation

Protect _beforeSwap by applying the existing nonReentrantHook modifier using CtxLib.Storage and the s.status field. This ensures the hook cannot be re-entered mid-swap and preserves reserve integrity.

Euler: Fixed in PR#77.

Cantina: Verified. The re-entrancy lock was added.

Description

In the current design, EulerSwap acts as a Uniswap V4-style hook, but it does not override or restrict the _beforeDonate function. While these donations do not affect EulerSwap's internal reserve tracking, they do affect the underlying Uniswap V4 pool contract, which receives and accounts for these tokens.

This introduces a mismatch: tokens can be donated directly to the Uniswap V4 pool contract during swap flows or hook invocations without passing through EulerSwap's intended control path. These donations can cause offsets in Uniswap V4’s internal balance tracking, leading to incorrect tick updates, mispriced liquidity ranges, and potentially broken accounting. Since EulerSwap does not mirror or react to these changes, the system ends up with inconsistent reserve views between the hook and the core pool.

The issue is made more dangerous by the flexibility of the V4 architecture — for instance, a flash swap callback or misconfigured hook integration could inadvertently or maliciously trigger a donation, causing state divergence that is not recoverable.

Recommendation

Override _beforeDonate in EulerSwap and revert unconditionally, matching the behavior of _beforeAddLiquidity. This ensures that any attempt to donate tokens directly to the pool while EulerSwap is the active hook is rejected, preserving alignment between the hook logic and the Uniswap V4 core pool state.

Euler: Fixed in PR 83.

Cantina: Verified, the beforeDonate hook now reverts. This is implemented by setting beforeDonate in getHookPermissions() to true, which would revert when BaseHook.beforeDonate() is called.

Context:

FundsLib.sol#L78-L86

Description:

In FundsLib.depositAssets(), the protocol fee is calculated and sent to p.protocolFeeRecipient without checking if the recipient is the zero address:

{    uint256 protocolFeeAmount = feeAmount * p.protocolFee / 1e18;
    if (protocolFeeAmount != 0) {        IERC20(asset).transfer(p.protocolFeeRecipient, protocolFeeAmount);        amount -= protocolFeeAmount;        feeAmount -= protocolFeeAmount;    }}

As such, if the protocol fee recipient is ever configured to be the zero address and protocolFeeAmount != 0, a transfer to the zero address is performed, which reverts for many tokens. An example would be any token inheriting OpenZeppelin's ERC20, since it explicitly checks for this case.

This would make it impossible to swap through the protocol as FundsLib.depositAssets() will always revert.

Recommendation:

Consider only taking a fee when the protocol fee recipient is not the zero address:

- {+ if (p.protocolFeeRecipient != address(0)) {      uint256 protocolFeeAmount = feeAmount * p.protocolFee / 1e18;        if (protocolFeeAmount != 0) {          IERC20(asset).transfer(p.protocolFeeRecipient, protocolFeeAmount);          amount -= protocolFeeAmount;          feeAmount -= protocolFeeAmount;      }  }

Euler: Fixed in PR 76.

Cantina: Verified, the recommendation was implemented.

Context:

EulerSwap.sol#L87-L89

Description:

EulerSwap.activate() performs the following checks to ensure the pool's reserves are on the curve:

require(CurveLib.verify(p, s.reserve0, s.reserve1), CurveLib.CurveViolation());require(!CurveLib.verify(p, s.reserve0 > 0 ? s.reserve0 - 1 : 0, s.reserve1), CurveLib.CurveViolation());require(!CurveLib.verify(p, s.reserve0, s.reserve1 > 0 ? s.reserve1 - 1 : 0), CurveLib.CurveViolation());

However, these checks make it impossible to deploy a pool with either reserve as 0, which is a valid input if x0 or y0 is also 0 (i.e. a one-sided curve). For example, if x = 0 and x0 = 0, the first two checks would simplify to:

require(CurveLib.verify(p, s.reserve0, s.reserve1), CurveLib.CurveViolation());require(!CurveLib.verify(p, 0, s.reserve1), CurveLib.CurveViolation());

Both checks are called with the same arguments as reserve0 = 0. However, assuming y and y0 are valid values, CurveLib.verify(p, reserve0, reserve1) would pass but !CurveLib.verify(p, 0, reserve1) would fail.

The same problem exists if f() is called directly to check if the current reserves are on the curve, since x = 0 is not a valid input for f(), but is technically on the curve since x0 = 0.

Recommendation:

Consider modifying the checks to:

require(CurveLib.verify(p, s.reserve0, s.reserve1), CurveLib.CurveViolation());if (s.reserve0 != 0) require(!CurveLib.verify(p, s.reserve0 - 1, s.reserve1), CurveLib.CurveViolation());if (s.reserve1 != 0) require(!CurveLib.verify(p, s.reserve0, s.reserve1 - 1), CurveLib.CurveViolation());

Calling f() directly is avoided as activate() would need to determine which curve (i.e. f(x) or f(y)) to use, which would be re-implementing the logic in verify().

Euler: FIxed in PR 75.

Cantina: Verified, the recommendation was implemented.

Context:

• CurveLib.sol#L85-L88
• QuoteLib.sol#L181-L192

Description:

In CurveLib.fInverse(), x is determined as follows when B <= 0:

if (B <= 0) {    // use the regular quadratic formula solution (-b + sqrt(b^2 - 4ac)) / 2a    x = Math.mulDiv(absB + sqrt, 1e18, 2 * c, Math.Rounding.Ceil) + 1;} else {

However, there is an edge case here when c = 0 as a division-by-zero occurs, causing fInverse() to revert. It occurs when y = y0 and x0 = 0, which causes B == 0.

This edge case is reachable if the pool is deployed with a one-sided curve (i.e. x0 = 0 or y0 = 0) and c for the other curve is 0. For example, assume a pool is deployed with:

• x0 = 0, y0 != 0
• cx = 0

Consider a swap from asset1 to asset0 where the input amount is specified in QuoteLib.findCurvePoint():

// swap Y in and X outyNew = reserve1 + amount;if (yNew < y0) {    // remain on g()    xNew = CurveLib.f(yNew, py, px, y0, x0, cy);} else {    // move to f()    xNew = CurveLib.fInverse(yNew, px, py, x0, y0, cx);}

If yNew == y0, fInverse() is called with y == y0, x0 = 0 and c = 0, which fulfils all the listed conditions above for the edge case to occur.

Recommendation:

There are two ways to handle this edge case:

1. In QuoteLib.findCurvePoint(), modify all the conditions that determine which curve to use to x <= x0/y <= y0 (i.e. call CurveLib.f() when x == x0/y == y0). Alternatively, implement a short-circuit for x == x0/y == y0 which returns (x0, y0).

2. Handle the c == 0 case in CurveLib.fInverse() by adding this branch to the top of the function:

if (c == 0) {    return Math.mulDiv(x0 * x0, px, x0 * px + py * (y - y0), Math.Rounding.Ceil);}

This is equal to:

Which is obtained by substituting $c_x = 0$ into equation 20 in the whitepaper and simplifying.

Euler: Fixed in PR 86.

Cantina: Verified, QuoteLib.findCurvePoint() now calls CurveLib.f() when x == x0/y == y0.

Context:

CurveLib.sol#L55

Description:

CurveLib.fInverse() performs the following calculation when calculating B:

int256 term1 = int256(Math.mulDiv(py * 1e18, y - y0, px, Math.Rounding.Ceil)); // scale: 1e36

However, it is possible for term1 to exceed uint256.max (and int256.max by extension) within the given bounds when px is extremely small and py is extremely large.

For example:

• y = uint112.max
• px = 1e10, py = 1e36
• y0 = 0

The price in this example would be py / px = 1e26, which extreme, but not entirely unreachable. For reference, WBTC / PEPE has a price of 1e21 (assuming WBTC = 100,000 USD and PEPE = 0.000001 USD).

Additionally, the following inputs result in int256.max < term1 <= uint256.max, causing the int256 cast to overflow:

y: 4601578453167855735395833887649913px: 23200824491py: 758264634474574188751969252527909293y0: 1302464407997906980507415513033026

As such, if a pool is deployed with an extreme price, functions involving quotes could unexpectedly revert since they call CurveLib.fInverse().

Recommendation:

A suitable upper bound for px and py can be found by solving the following inequality:

(py * 1e18) * (y - y0) / px <= int256.max

Assuming the worst-case of y - y0 = uint112.max, the inequality simplifies to:

py / px <= int256.max / uint112.max / 1e18

Which is roughly equal to 1.1e25. As such, consider restricting the upper bound of px and py to 1e25 to ensure py / px (or px / py) does not exceed 1.1e25.

While this reduces the maximum price which can be configured, it is still a reasonable price range. Realistically, the largest possible price range is GUSD / PEPE, which has a price of:

price of 1 wei of GUSD / price of 1 wei of PEPE = (1 / 1e2) / (0.000001 / 1e18) = 1e22

Euler: Fixed in PR 85.

Cantina: Verified, px and py are now checked to not be greater than 1e25 in EulerSwap.activate().

Description

The EulerSwapFactory contract and other related contracts (such as EulerSwap, EulerSwapPeriphery, and MetaProxyDeployer) do not consistently follow a naming convention to clearly distinguish between public/external and internal/private functions. Specifically, internal helper functions like uninstall, swapAndPop, and similarly scoped utility functions are defined without a leading underscore (_), which makes it difficult to differentiate at a glance between callable external APIs and internal logic. This is especially problematic in contracts with complex state transitions or logic branching, where traceability of function calls plays a critical role in auditing and maintaining correctness.

This inconsistent naming can cause confusion during review and debugging phases, and it opens the possibility for accidental misuse or misidentification of function purpose. It also breaks with widely adopted Solidity conventions, which favor using a prefixed underscore (_) for non-external functions that should not be exposed or used directly by consumers of the contract.

Recommendation

It is recommended to refactor all internal and private functions across EulerSwapFactory and associated contracts (EulerSwap, FundsLib, MetaProxyDeployer, etc.) to include a leading underscore (_) in their names. For example, swapAndPop should be renamed to _swapAndPop, and similarly for uninstall and other auxiliary logic handlers. This will improve code readability, clarify intent, and align the codebase with Solidity best practices.

If the team prefers to maintain the current naming scheme for legacy or readability reasons, an acceptable alternative is to clearly document the visibility and intended usage of such functions with NatSpec annotations and visibility modifiers, though this is still considered a weaker practice than using naming convention alone.

Euler: Acknowledged.

Cantina: Acknowledged.

Description

The EulerSwap contract is designed to behave similarly to a Uniswap V2 pair, but it does not implement all interface expectations of the UniswapV2 ecosystem. Specifically, it omits the token0() and token1() public getters, which are critical for integration with external contracts using the uniswapV2Call() flash swap pattern.

As described in the Uniswap V2 documentation, integrators typically write callback handlers under the assumption that:

function uniswapV2Call(address sender, uint amount0, uint amount1, bytes calldata data) external {    address token0 = IUniswapV2Pair(msg.sender).token0();    address token1 = IUniswapV2Pair(msg.sender).token1();    assert(msg.sender == IUniswapV2Factory(factoryV2).getPair(token0, token1));    ...}

This pattern assumes that:

1. The pair contract exposes token0() and token1() as public view functions.
2. The caller (msg.sender) is a contract created by a known UniswapV2Factory, registered via getPair(token0, token1).

The issue is that EulerSwap pairs are not deployed or tracked by a canonical UniswapV2Factory instance. Therefore, any standard check like:

assert(msg.sender == IUniswapV2Factory(factoryV2).getPair(token0, token1));

will fail, unless integrators explicitly whitelist EulerSwap addresses or bypass the factory check entirely. Even though EulerSwapFactory exists, it is not designed to conform to UniswapV2Factory's interface, and integrators will continue targeting Uniswap's version.

Moreover, without token0() and token1() getters, the very first step in uniswapV2Call reverts, as msg.sender does not expose these functions. This breaks compatibility with flash swap routers, arbitrage bots, and legacy DeFi integrations that assume drop-in V2 pair behavior.

Recommendation

If compatibility with existing uniswapV2Call-based contracts is a goal (e.g., allowing integrators to plug EulerSwap into existing arbitrage or flash swap flows), the following steps should be taken:

1. Add token0() and token1() public view functions to the EulerSwap pair contracts. These should return the respective token addresses in fixed canonical order. This change alone will enable basic integration and unlock compatibility with a broad range of uniswapV2Call consumers.

2. Document factory expectations clearly. While EulerSwapFactory is not meant to mimic UniswapV2Factory, it's important to communicate to integrators that the factory validation step (i.e., using getPair(token0, token1)) must be either removed or replaced by a manual whitelisting process.

3. Consider renaming the callback (e.g., eulerSwapCall()) or explicitly documenting that while the mechanism is similar to UniswapV2, it is not drop-in compatible unless these caveats are handled.

If compatibility is not a design goal, the documentation should strongly emphasize that integrators must not assume this contract adheres to the V2 pair interface, and should instead follow custom integration guidelines.

Euler: Fixed in PR 80.

Cantina: Verified, the callback has been renamed to IEulerSwapCallee.eulerSwapCall().

Context:

QuoteLib.sol#L98-L103

Description:

In QuoteLib.calcLimits(), outLimit is restricted by the remaining cash and borrow caps in the vault as such:

(, uint16 borrowCap) = vault.caps();uint256 maxWithdraw = decodeCap(uint256(borrowCap));maxWithdraw = vault.totalBorrows() > maxWithdraw ? 0 : maxWithdraw - vault.totalBorrows();if (maxWithdraw > cash) maxWithdraw = cash;maxWithdraw += vault.convertToAssets(vault.balanceOf(eulerAccount));if (maxWithdraw < outLimit) outLimit = maxWithdraw;

However, the following line:

if (maxWithdraw > cash) maxWithdraw = cash;

should be removed for two reasons:

1. Assets deposited by eulerAccount are part of cash, so maxWithdraw is double-counting deposited assets.
2. The case where maxWithdraw > cash is implicitly covered by the cash < outLimit check above.

For example, assume the following numbers:

• cash = 100
• borrowCap - totalBorrows = 120
• depositedAssets = vault.convertToAssets(vault.balanceOf(eulerAccount)) = 20

For point (1), maxWithdraw is calculated as:

min(borrowCap - totalBorrows, cash) + depositedAssets = min(120, 100) + 20 = 120

120 is clearly wrong as the vault only has a total of 100 assets that can be withdrawn/borrowed.

Due to point (2), the inflated maxWithdraw does not cause any issues as outLimit = cash = 100 from the cash < outLimit check above. In general, borrowCap - totalBorrows > cash implies maxWithdraw > cash, so it will always be covered by the cash < outLimit check.

Recommendation:

The maxWithdraw > cash check prevents maxWithdraw + depositedAssets from overflowing, since maxWithdraw could be up to uint256.max.

Consider short-circuiting if the intermediate maxWithdraw is greater than outLimit:

- if (maxWithdraw > cash) maxWithdraw = cash;- maxWithdraw += vault.convertToAssets(vault.balanceOf(eulerAccount));- if (maxWithdraw < outLimit) outLimit = maxWithdraw;+ if (maxWithdraw < outLimit) {+     maxWithdraw += vault.convertToAssets(vault.balanceOf(eulerAccount));+     if (maxWithdraw < outLimit) outLimit = maxWithdraw;+ }

This implementation should save some gas since further calculations are skipped when maxWithdraw > outLimit can be determined early.

Euler: Fixed in PR 81.

Cantina: Verified, the recommendation has been implemented.

Context

See below.

Description/Recommendation:

1. CurveLib.sol#L71-L72, CurveLib.sol#L79-L80 - Consider using OZ's sqrt() with rounding to round up. For example:

- sqrt = Math.sqrt(discriminant); // drop back to 1e18 scale- sqrt = (sqrt * sqrt < discriminant) ? sqrt + 1 : sqrt;+ sqrt = Math.sqrt(discriminant, Math.Rounding.Ceil);

2. CurveLib.sol#L38, CurveLib.sol#L90 - Consider using Math.ceilDiv() for rounding up instead, it improves readability and avoids the case where n + (n - 1) overflows uint256.max.

- return y0 + (v + (py - 1)) / py;+ return y0 + Math.ceilDiv(v, py);

- x = (2 * C + (absB + sqrt - 1)) / (absB + sqrt) + 1;+ x = Math.ceilDiv(2 * C, absB + sqrt) + 1;

3. CurveLib.sol#L71 - Typo, double comment slashes.

4. CurveLib.sol#L58 - Unncessary brackets can be removed:

- C = Math.mulDiv((1e18 - c), x0 * x0, 1e18, Math.Rounding.Ceil); // scale: 1e36+ C = Math.mulDiv(1e18 - c, x0 * x0, 1e18, Math.Rounding.Ceil); // scale: 1e36

5. UniswapHook.sol#L82-L88 - The code here can be simplified:

if (isExactInput) {      amountIn = uint256(-params.amountSpecified);-     amountOut = QuoteLib.computeQuote(evc, p, params.zeroForOne, uint256(-params.amountSpecified), true);+     amountOut = QuoteLib.computeQuote(evc, p, params.zeroForOne, amountIn, true);  } else {-     amountIn = QuoteLib.computeQuote(evc, p, params.zeroForOne, uint256(params.amountSpecified), false);      amountOut = uint256(params.amountSpecified);+     amountIn = QuoteLib.computeQuote(evc, p, params.zeroForOne, amountOut, false);  }

6. UniswapHook.sol#L119 - This check is not needed as CurveLib.verify() has the same check. Consider removing it.

7. EulerSwapFactory.sol#L63-L67 - params.eulerAccount does not need to be included in the salt as it in the creation code as part of params. Therefore, a different eulerAccount would result in a different pool address.

8. EulerSwapFactory.sol#L94 - poolParams.eulerAccount doesn't need to be cast to an address as it is already one:

- keccak256(abi.encode(address(poolParams.eulerAccount), salt)),+ keccak256(abi.encode(poolParams.eulerAccount, salt)),

9. CtxLib.sol#L24-L40 - The code here can be simplified to avoid using assembly:

return abi.decode(msg.data[msg.data.length - 384:], (IEulerSwap.Params));

10. EulerSwap.sol#L61 - activate() should be declared external.

Euler: Fixed in the following PRs:

1. PR 78
2. PR 84
3. PR 70
4. PR 70
5. PR 82
6. PR 82
7. PR 71
8. PR 70
9. PR 69
10. PR 70

Cantina: Verified.

Context:

• UniswapHook.sol#L129-L136
• Hooks.sol#L170-L175

Description:

UniswapHook._beforeInitialize() is overridden to check that _poolKey.tickSpacing has not been set. This is meant to ensure the pool can only be initialized through UniswapHook.activateHook():

function _beforeInitialize(address, PoolKey calldata, uint160) internal view override returns (bytes4) {    // when the hook is deployed for the first time, the internal _poolKey is empty    // upon activation, the internal _poolKey is initialized and set    // once the hook contract is activated, do not allow subsequent initializations    require(_poolKey.tickSpacing == 0, AlreadyInitialized());    return BaseHook.beforeInitialize.selector;}

However, Uniswap V4 calls hooks with the noSelfCall modifier, which skips calling the hook if the caller is the hook address itself:

/// @notice modifier to prevent calling a hook if they initiated the actionmodifier noSelfCall(IHooks self) {    if (msg.sender != address(self)) {        _;    }}

Therefore, when poolManager.initialize() is called in activateHook(), the beforeInitialize hook is actually never called and _beforeInitialize() is never reached. In fact, checking _poolKey.tickSpacing == 0 is incorrect as _poolKey is set before calling poolManager.initialize() in activateHook().

This behavior can be observed by replacing the require statement with revert AlreadyInitialized() and running the tests; they will all still pass.

Recommendation:

Consider removing _beforeInitialize() entirely. Initializations outside of activateHook() would revert with HookNotImplemented in BaseHook, while normal initialization works as intended. _beforeAddLiquidity() can also be removed, since the implementation in BaseHook also reverts.

Alternatively, remove the check and simply revert with AlreadyInitialized.

Euler: Fixed in PR 83.

Cantina: Verified, _beforeInitialize() and _beforeAddLiquidity() have been removed.

Context:

CurveLib.sol

Description:

The following tests may be helpful for future changes or fixes:

1. Fuzz tests for f() and fInverse() to check for reverts/overflows.
2. Differential tests for f() and fInverse() against the equations from the whitepaper translated into python.

Some things to note for (2):

• The tests require enabling ffi in your Foundry config.
• The tests skip any inputs where f()/fInverse() revert, or the case where casting term1 to int256 overflows in fInverse().
• y is bounded to [y0, uint112.max] for fInverse() although it isn't listed in the pre-conditions.

Euler

Improved NatSpec for [y0, uint112.max] for fInverse() in PR 85 and PR 87.

Cantina

Verified.