The Standard

Summary

There is no function provided in SmartVaultV3 by which a borrower is able to add collateral into the vault, it means the borrower should transfer their collaterals out-of-protocol.

Vulnerability Details

• Borrowers should transfer their collateral out-of-protocol/off-chain -> The protocol is losing on-chain data/logs

• Borrowers should transfer their collateral out-of-protocol/off-chain -> A mistake (e.g a typo) can lead to loss of funds for borrower

• When there is no way to add collateral, a naive borrower will be forced to liquidate -> The borrower doesn't know much about Web3/SmartContracts, so he can't transfer some collateral to prevent from liquidation, So its vault gets liquidated.

Impact

See Vulnerability Details

Tools Used

Manual Review

Recommendations

Consider adding a function addCollateral in smart contract and make possible for borrower to add their collaterals through the protocol/on-chain.