fee-on-transfer tokens can drain pool
Summary
In this protocol ERC20 tokens can be deposited as collateral, but if there will be allowed fee-on-transfer, balances can be drained.
Vulnerability Details
Hacker can use depositCollateralAndMintDSC. Balances not checked after transferFrom, call will be success, but protocol will receive amount - fee. After that attacker calls redeemCollateralForDsc. Balances of user will be equal to amount, but his real money amount-fee. Protocol sends him amount, attacker recieve amount-fee, but pool loose amount of fee.
Impact
If one if tokens will be fee-on-transfer or enable it ( USDT can enable fee ) balances in coneact can be compromitised. ( possible some liquidations can be locked)
Tools Used
Manual review
Recommendations
Check balances sfter transfer, support fee-on transfer
Prize pool breakdown
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