imsrybr0 - LiquidationLogic@_burnCollateralTokens
does not account for liquidation fees when withdrawing collateral during liquidation leading to incorrect accounting and Pools insolvency
#228
Labels
Has Duplicates
A valid issue with 1+ other issues describing the same vulnerability
High
A High severity issue.
Reward
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imsrybr0
High
LiquidationLogic@_burnCollateralTokens
does not account for liquidation fees when withdrawing collateral during liquidation leading to incorrect accounting and Pools insolvencySummary
LiquidationLogic@_burnCollateralTokens
does not account for liquidation fees when withdrawing collateral during liquidation leading to incorrect accounting and Pools insolvency, ultimately impacting regular flows (.e.g borrows, withdrawals, redemptions, ...) in the protocol for the different actors (.i.e Pools users, Curated Vaults and their users, NFT Positions users).Root Cause
LiquidationLogic
PositionBalanceConfiguration
When there are protocol liquidation fees,
_burnCollateralTokens
doesn't account for liquidation fees when withrawing the collateral, leading to the pool and actor having more supply shares than reality.Internal pre-conditions
Protocol liquidations fees are set.
External pre-conditions
N/A
Attack Path
Not an attack path per say as this happens in every liquidation when there are liquidation fees.
tokenA
tokenB
tokenB
Impact
PoC
Test
Results
Mitigation
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