What happened
Peapods Finance's February 2025 incident affected reward processing in an older Pod implementation. A caller could choose an extreme slippage override, forcing a swap after manipulating the pool price. The reported impact was approximately $3,500, and Peapods said the affected Pod would be reimbursed.
Technical root cause
An unrestricted caller-supplied _slippageOverride controlled amountOutMinimum for a Uniswap V3 swap. An extreme value bypassed the intended price protection and exposed reward processing to price manipulation.
How it happened
- The attacker made a large trade to move the pool price.
- They called depositFromPairedLpToken with _slippageOverride set to 999, weakening the swap's minimum-output protection.
- The rewards contract traded at an unfavorable price, and the attacker traded back to extract the difference.
Protocol details
Security review history
- SourceHat View report
Evidence
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