The poolBalance
variable is incremented by the same amount as what is transferred into the protocol and then decremented by transfers out. With fee on transfer tokens, the amount received by the contract is less than the sum of recorderd pool balances for the token. If multiple users have pools with the fee as transfer token as a loan token, there would not be enough funds in the contract to pay later withdrawers
Pools become insolvent with fee-on-transfer tokens
Manual Review
Specify that fee-on-transfer tokens cannot be used in lending pools
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