Beedle - Oracle free perpetual lending

Summary

It has been identified that a borrower can prevent a lender from liquidating (seizing) them by refinancing the loan to the same pool, which resets the auctionStartTimestamp to type(uint256).max.

Vulnerability Details

The vulnerability arises from the refinancing operation, where a borrower can prevent a lender from liquidating them by refinancing the loan to the same pool. This action resets the auctionStartTimestamp to type(uint256).max, effectively preventing the lender from initiating a liquidation.

Impact

This vulnerability can lead to significant financial losses for the lender, who may be unable to liquidate a borrower in case of default.

Tools Used

Manual Review

Recommendations

To mitigate this vulnerability, it is recommended to revise the refinancing operation to prevent a borrower from resetting the auctionStartTimestamp by refinancing the loan to the same pool.