Submission Details
Severity:
Malicious borrower can empty pool balance by refinancing
Summary
Malicious borrower can empty pool balance by refinancing.
Vulnerability Details
Borrower can refinance a loan to a new pool, the new pool balance will be reduced by the new debt.
_updatePoolBalance(poolId, pools[poolId].poolBalance - debt);
At the end of the refinancing process, the new pool balance is wrongly reduced again.
pools[poolId].poolBalance -= debt;
A malicious borrower can specify the new debt to be the half of the new pool balance and refinance to the new pool, then the new pool will be emptied as the pool balance is reduced twice.
Impact
Pool balance is emptied.
Tools Used
Manual Review
Recommendations
Please consider to remove one of the reductions in the refinance method.
Prize pool breakdown
Total prize
20,000 USDC
nSLOC
70628 USDC / LOC
18,000 USDC
2,000 USDC
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