Issue: Permit2 Infinite Allowance Not Enabled by Default in Solady ERC20

[Swapnapratim]

Background

Solady’s ERC20 contract includes logic to grant infinite allowance to the canonical Permit2 contract (0x000000000022D473030F116dDEE9F6B43aC78BA3). This is controlled by the internal function _givePermit2InfiniteAllowance(). However, in the base Solady ERC20 implementation, this function returns false by default:

function _givePermit2InfiniteAllowance() internal view virtual returns (bool) {
    return false;
}

This means that Permit2 does not have infinite allowance unless a derived contract explicitly overrides this function to return true.

Observed Problem

• The test suite and some comments in the codebase assumed that Permit2 would have infinite allowance by default when using Solady’s MockERC20.
• In practice, Permit2 allowance behaves like any other spender unless the override is present.
• As a result, tests involving Permit2 transfers fail with InsufficientAllowance() unless an explicit approve(permit2, amount) is called in the test setup.

Encountered 3 failing tests in test/integration/Permit2Deposit.t.sol:Permit2DepositTest
[FAIL: TRANSFER_FROM_FAILED] test_depositBatchViaPermit2NativeAndERC20() (gas: 151638)
[FAIL: TRANSFER_FROM_FAILED] test_depositBatchViaPermit2SingleERC20() (gas: 118693)
[FAIL: TRANSFER_FROM_FAILED] test_depositERC20ViaPermit2AndURI() (gas: 110603)

Encountered 4 failing tests in test/integration/Permit2DepositAndRegister.t.sol:Permit2DepositAndRegisterTest
[FAIL: TRANSFER_FROM_FAILED] test_batchDepositAndRegisterViaPermit2ThenClaim() (gas: 171593)
[FAIL: TRANSFER_FROM_FAILED] test_batchDepositAndRegisterWithWitnessViaPermit2ThenClaim() (gas: 182135)
[FAIL: TRANSFER_FROM_FAILED] test_depositAndRegisterViaPermit2ThenClaim() (gas: 116218)
[FAIL: TRANSFER_FROM_FAILED] test_depositAndRegisterWithWitnessViaPermit2ThenClaim() (gas: 117415)

Encountered 3 failing tests in test/unit/Deposit/DepositViaPermit2Logic.t.sol:DepositViaPermit2LogicTest
[FAIL: TRANSFER_FROM_FAILED] test_depositBatchViaPermit2_multipleERC20() (gas: 98410)
[FAIL: TRANSFER_FROM_FAILED] test_depositBatchViaPermit2_singleERC20() (gas: 86273)
[FAIL: TRANSFER_FROM_FAILED] test_depositViaPermit2() (gas: 82427)

Root Cause

• The MockERC20 contract used in tests does not override _givePermit2InfiniteAllowance() to return true.
• Therefore, Permit2 does not have infinite allowance, and explicit approval is required.

Options

1. Explicitly Approve Permit2 in Tests (Recommended for Most Users)
   • Update test setup to always call token.approve(permit2, amount) for any token used with Permit2.
   • This approach is compatible with all ERC20 implementations, not just Solady.
2. Override _givePermit2InfiniteAllowance() in a Custom MockERC20 (Advanced/Optional)

   • If you want to enable infinite Permit2 allowance for all tests using Solady’s MockERC20, create a custom mock without overriding MockERC20 used in the tests of Solady:

      contract Permit2EnabledMockERC20 is MockERC20 {
       function _givePermit2InfiniteAllowance() internal view override returns (bool) {
           return true;
        }
     }

PR Changes

• Update test setup both in integration and unit tests directory to always approve Permit2 explicitly for all tokens used in Permit2-related tests.
• Correct the invalid comment in the integration setup file to avoid confusion about default Permit2 behavior in Solady ERC20.

[socket-security]

Review the following changes in direct dependencies. Learn more about Socket for GitHub.

Diff	Package	Supply Chain Security	Vulnerability	Quality	Maintenance	License
	@​nomicfoundation/​hardhat-foundry@​1.1.3
	@​nomicfoundation/​hardhat-toolbox-viem@​3.0.0
	@​types/​chai@​4.3.20
	chai@​4.5.0
	hardhat-gas-reporter@​1.0.10
	hardhat@​2.24.0
	@​nomicfoundation/​hardhat-viem@​2.0.6
	viem@​2.29.2

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[socket-security]

Warning

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Warn		Socket optimized override available for [email protected]. cleanup available: Run npx socket optimize From: package-lock.json → npm/[email protected] → npm/@nomicfoundation/[email protected] → npm/[email protected] → npm/[email protected] ℹ Read more on: This package | This alert | Using Socket CLI to optimize dependencies Next steps: Take a moment to review the security alert above. Review the linked package source code to understand the potential risk. Ensure the package is not malicious before proceeding. If you're unsure how to proceed, reach out to your security team or ask the Socket team for help at [email protected]. Suggestion: Run `npx socket optimize` in your repository to optimize your dependencies. Mark the package as acceptable risk. To ignore this alert only in this pull request, reply with the comment @SocketSecurity ignore npm/[email protected]. You can also ignore all packages with @SocketSecurity ignore-all. To ignore an alert for all future pull requests, use Socket's Dashboard to change the triage state of this alert.
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Warn		Socket optimized override available for [email protected]. cleanup available: Run npx socket optimize From: package-lock.json → npm/@nomicfoundation/[email protected] → npm/[email protected] → npm/[email protected] ℹ Read more on: This package | This alert | Using Socket CLI to optimize dependencies Next steps: Take a moment to review the security alert above. Review the linked package source code to understand the potential risk. Ensure the package is not malicious before proceeding. If you're unsure how to proceed, reach out to your security team or ask the Socket team for help at [email protected]. Suggestion: Run `npx socket optimize` in your repository to optimize your dependencies. Mark the package as acceptable risk. To ignore this alert only in this pull request, reply with the comment @SocketSecurity ignore npm/[email protected]. You can also ignore all packages with @SocketSecurity ignore-all. To ignore an alert for all future pull requests, use Socket's Dashboard to change the triage state of this alert.
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Warn		[email protected] has Shell access. Module: child_process Location: Package overview From: package-lock.json → npm/[email protected] → npm/[email protected] ℹ Read more on: This package | This alert | What is shell access? Next steps: Take a moment to review the security alert above. Review the linked package source code to understand the potential risk. Ensure the package is not malicious before proceeding. If you're unsure how to proceed, reach out to your security team or ask the Socket team for help at [email protected]. Suggestion: Packages should avoid accessing the shell which can reduce portability, and make it easier for malicious shell access to be introduced. Mark the package as acceptable risk. To ignore this alert only in this pull request, reply with the comment @SocketSecurity ignore npm/[email protected]. You can also ignore all packages with @SocketSecurity ignore-all. To ignore an alert for all future pull requests, use Socket's Dashboard to change the triage state of this alert.
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