15,000 USDC
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Submission Details
Severity: medium

Lacks caps on asset supply and redeems

Summary

No caps on assets, user actions, deposits, minting etc

Vulnerability Details

For project risk management and proper management to ensure stability and peg is controlled
There needs to be maximum values and limits on certain aspects. These aspects include the amount of collateral assets that a user can supply. These caps can even be extended to the total maximum assets the protocol can hold

Impact

High: This increases the protocols exposure to risk. Additionally it opens up protocol to attacks, bugs, vulnerabilities that rely on large funds e.g Flashloan, Infinite Mint Attacks, Price Manipulation, Depeg Pressures, Liquidation Challenges as a big gap in health will have few with ability or appetite to resolve it. With such challenges the stablecoin will not maintain its peg, assets for users are at risk as well

Tools Used

Manual Analysis

Recommendations

It is recommended there be deposit caps, redeem caps, thresholds, overral assets held thresholds and such other to limit the risk for the protocol.

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