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_posts/2024-06-27-USDTDoesNotComplyWithERC20Standard.markdown
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layout: post | ||
title: "USDT Does Not Comply With ERC20 Standard" | ||
date: 2024-06-27 15:12:29 +0800 | ||
categories: jekyll update | ||
--- | ||
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### Problem Introduction | ||
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I am running into this erros when i swap USDT to DAI by uniswap. The tool i am using is `foundry`. | ||
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```solidity | ||
├─ [24953] 0xdAC17F958D2ee523a2206206994597C13D831ec7::approve(SimpleSwap: [0x5615dEB798BB3E4dFa0139dFa1b3D433Cc23b72f], 1000) | ||
│ ├─ emit Approval(owner: 0x3f5CE5FBFe3E9af3971dD833D26bA9b5C936f0bE, spender: SimpleSwap: [0x5615dEB798BB3E4dFa0139dFa1b3D433Cc23b72f], value: 1000) | ||
│ └─ ← [Stop] | ||
└─ ← [Revert] EvmError: Revert | ||
``` | ||
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Here is my test code in `SimpleSwap.t.sol` | ||
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```javascript | ||
IERC20 tokenIn = IERC20(USDT); | ||
uint256 balOfWhale = tokenIn.balanceOf(USDT_WHALE); | ||
tokenIn.approve(address(simpleSwap), 1000); | ||
uint256 amountOut = simpleSwap.swap(USDT, DAI, 1000); | ||
``` | ||
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After google the result, i know that the USDT does not complement the `approve` function same as `ERC20` standard smart contract. | ||
The approve function in USDT does not have the return value. But the standard interface in ERC20 have a bool return value. | ||
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```javascript | ||
function approve(address _spender, uint _value) public onlyPayloadSize(2 * 32) { | ||
require(!((_value != 0) && (allowed[msg.sender][_spender] != 0))); | ||
allowed[msg.sender][_spender] = _value; | ||
Approval(msg.sender, _spender, _value); | ||
} | ||
``` | ||
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Code above from [ethescan USDT smart contract](https://etherscan.io/address/0xdAC17F958D2ee523a2206206994597C13D831ec7#code) | ||
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```javascript | ||
function approve(address spender, uint256 value) public virtual returns (bool) { | ||
address owner = _msgSender(); | ||
_approve(owner, spender, value); | ||
return true; | ||
} | ||
``` | ||
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### The solution | ||
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So the return value indeed is different between USDT and ERC20 standard. | ||
But why the evm fails? | ||
That is because evm will check the return data size when invoking a function of smart contract. | ||
So there are two ways to solove this problem. | ||
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1. Don't use standard ERC20 approve interface | ||
Instead of import IERC20 from OpenZepplin, we write our own IERC20. | ||
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```javascript | ||
interface IERC20 { | ||
function approve(address spender, uint256 value) external; | ||
} | ||
``` | ||
I already try it, it really works. The code is in [USDTSwapWithoutStandardERC20.t.sol](https://github.com/heeween/foundryProject/blob/main/uniswap/test/USDTSwapWithoutStandardERC20.t.sol) | ||
But if we write our own IERC20. Then other tokens that apply ERC20 standard will fails. So the second way should be the best practice to solve this problem. | ||
2. Use safeERC20 library | ||
```javascript | ||
import "../lib/openzeppelin-contracts/contracts/token/ERC20/utils/SafeERC20.sol"; | ||
contract SimpleSwapTest is Test { | ||
using SafeERC20 for IERC20; | ||
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function testSwapFromUSDTToDAI() public { | ||
... | ||
IERC20 tokenIn = IERC20(USDT); | ||
tokenIn.forceApprove(address(simpleSwap), 1000); | ||
... | ||
} | ||
} | ||
``` | ||
As the documentation of forceApprove in SafeERC20. The extension of ERC20 use `encodeCall` to bypass the return value checking in Ethereum. | ||
The full code is in here [USDTSwapWithSafeERC20.t.sol](https://github.com/heeween/foundryProject/blob/main/uniswap/test/USDTSwapWithSafeERC20.t.sol) |