ERC20 tokens that do not follow the standard correctly can cause a DOS or unexpected behavior
Summary
ERC20 tokens that do not follow the standard correctly can cause a DOS or unexpected behavior.
Vulnerability Details
In Lender.sol dangerous ERC20 operations are used for collateralToken and loanToken (which are both configured by the user). Not all ERC20s follow the standard. Some do silent fails if not the operation is not checked (like USDT), some revert if approval is from non-zero to non-zero value and other have before and after transfer hooks.
Impact
The protocol can wrongly assume that a certain ERC20 operation was successful, leading to unexpected behavior.
Tools Used
Manual Review
Recommendations
use safeERC20 by OZ.
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