Summary

The protocol intends to virtualize assets outside of just tokens and pegged stablecoins, such as real estate and stocks.
Stock split and reverse split may cause the token accounting to be inaccurate.

Vulnerability Details

Stock split and reverse split are very common in the stock market. There are many examples.
For instance, in a 2-for-1 stock split, a shareholder receives an additional share for each share held.
In the event of a stock split, the asset token representing the given stock will have wrong accounting when minting, since the split will remain unaccounted for.

Impact

Token value can be lost or gained unfairly.

Tools Used

Manual Review

Recommendations

Due to the nature of the issue and the unpredictability of the way the protocol might choose to handle complex assets like stocks, there is no 1 mitigation for this issue. There could be some kind of custom oracle to watch out for such stock events and rebase the virtual values accordingly.