Beedle - Oracle free perpetual lending

Summary

The contracts calculations assumes that both the debt and collateral variables are represented in tokens with the same decimals.

Vulnerability Details

lets look at an example

The borrow function in the given contract calculates a loanRatio to determine the risk associated with a loan based on the debt and collateral provided.

In scenarios where debt and collateral are tokens with different decimal precision, such as DAI (18 decimals) and USDC (6 decimals), the loanRatio can result in incorrect risk management as it is used to enforce the maximum loan-to-value ratio:

Impact

This can lead to loans with a higher actual ratio than intended, exposing lenders to higher default risks.

Tools Used

Manual analysis

Recommendations

When combining amounts of multiple tokens that may have different precision, convert all of the amounts into the same precision before any computation.