the issue is about mishandling of deflationary tokens, the transferred amount for calculations and does not consider the balance before and after, therefore it does not handle the case of tokens that implement fees on transfers.
The vulnerability arises from the mishandling of deflationary tokens. The current implementation uses the transferred amount for calculations, without considering the balance before and after the transfer. This approach does not account for tokens that implement fees on transfers, leading to potential inaccuracies in the calculations.
This vulnerability can lead to significant inaccuracies in the calculations involving deflationary tokens, which can affect the fairness of the loan terms and potentially lead to financial losses for either the borrower or the lender.
Manual Review
To mitigate this vulnerability, it is recommended to revise the contract to consider the balance before and after the transfer when dealing with deflationary tokens. This approach should account for any fees implemented on transfers, ensuring the accuracy of the calculations.
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