Lender can liquidate user easily at any time and steal their collateral
Summary
In Lender.sol a lender can always liquidate a user and get their collateral.
Vulnerability Details
A malicious lender can set the pool's auction length to a low amount, such as 1 second. After they start an auction and it immediately finishes, they can call seizeLoan, stealing the collateral of the borrower which is usually more valuable than the loan. That way the borrower has no time to react to the liquidation by repaying their loan and they are forced to lose their collateral.
Impact
The collateral of the borrower is always at risk of being stolen by the lender.
Tools Used
Manual review
Recommendations
Add a minimum auctionLength limit, such as 1 day, in order to allow the borrower to reclaim their collateral.
Prize pool breakdown
Live
The contest is live. Earn rewards by submitting a finding.
Appeals
This is your time to appeal against judgements on your submissions.
Appeals Review
Appeals are being carefully reviewed by our judges.