Summary - Vulnerability Details

This is the known bug we learned in the tutorial but because it was not mentioned in the know issues due to that I am mentioning it.

The protocol gives a 10% bonus to liquidators when they pay the users' borrowed DSC back to the protocol in order to gain their collateral. It means we are paying them $110 in collateral tokens for $100 DSC tokens.

It means if the collateral tokens value will be less than $110 then the protocol will not be able to incentivize the liquidators.

It is also possible that the contract will have the collective amount for that token to pay the 10% but this will damage the last users who redeem their collateral for that token but the contract will not have that because it pays incentives.

Tools Used

Tutorial

Recommendations

Give the bonus only when the collateral amount is greater than 110%, this way obviously liquidators will not gain any profit for doing liquidation but project owners can save the protocol when the collateral will be less than 110%.