The Standard

The Standard
DeFiHardhat
20,000 USDC
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Submission Details
Severity: medium
Valid

No incentive to liquidate undercollateralized vault

Summary

There's no incentive or reward given to vault liquidators

Vulnerability Details

Undercollateralized vault are meant to be liquidated in-order not to incur bad debt on EUROs, the issue is that there's no incentive for anyone to liquidate an undercollateralized vault, MEV bots would not liquidate the vault because there's no reward or incentive to do so.

Impact

undercollateralized vault would incur bad debts since there's no incentives to liquidate them

Tools Used

Manual Review

Recommendations

An small percentage of the liquidated funds should be given to the liquidator as incentive

Updates

Lead Judging Commences

hrishibhat Lead Judge almost 2 years ago
Submission Judgement Published
Validated
Assigned finding tags:

underwater

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