20,000 USDC
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Submission Details
Severity: high
Valid

Lending pools with Fee on Transfer tokens become insolvent

Vulnerability Details

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

Impact

Pools become insolvent with fee-on-transfer tokens

Tools Used

Manual Review

Recommendations

Specify that fee-on-transfer tokens cannot be used in lending pools

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