Summary

Protocol is meant to be always 200 % Collateralized and if a user's health factor goes below 1 i.e he will be liquidate.
It is accepted that this is intended property of protocol but it will affects user badly.
There is no buffer time for user. Crypto Market is very volatile and with this sensitive liquidation mechanism user can loss his potential funds
as in this situation even if he will try to burn his tokens or provide extra collateral Attacker(liquidator will front run).

Vulnerability Details

Suppose a Alice deposited 105USD worth of ETH as collateral and minted 50 dsc. Currently health factor is greater than 1 and all of sudden her worth went to 99.9USD she will be liquidated and will loss funds.
All the other protocols have a idea to give a buffer time in which interval Alice can provide more collateral or burn her minted tokens to remain in good health decreasing sensitivity of liquidation.

At this if Alice even try to deposit more collateral or burn her minted tokens liquidator will front run her tx.
https://github.com/Cyfrin/2023-07-foundry-defi-stablecoin/blob/main/src/DSCEngine.sol#L229

Impact

Unintended Loss of funds of user

Tools Used

Manual Review

Recommendations

Giving a some sort of buffer like other protocols can be use here to mitigate this issue.
like AAVE https://docs.aave.com/faq/liquidations
simple eg.. 50% liquidation if health factor is between 0.9 to 1 and then after 0.9 full liquidation so user will have some buffer time to respond