The Standard

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

Protocol is vulnerable to unfair liquidations

Proof of Concept

The failure of Arbitrum sequencer can lead users to be liquidated.

During a sequencer downtime , there is an inability for participants to act on the health factor, i.e to improve their collaterization value by providing more assets, now due to the failure of Arbitrum sequencer, liquiadation via liquidate() would unfairly affect honest users as it would now seem like a "pause" was applied to all actions and once it gets back up a deposition of assets is not ensured to be done.

Impact

This vulnerability results in users being stopped from depositing, and users are likely to suffer mass liquidations when sequencer is available again, coupled with the fact that querying of the prices is going to update all pending price once the sequencer comes back up too.

Recommended Mitigation Steps

To address this issue, it is recommended to gives users a grace period once the sequencer comes back online,

Updates

Lead Judging Commences

hrishibhat Lead Judge over 1 year ago
Submission Judgement Published
Validated
Assigned finding tags:

Arbitrum-sequncer

bauchibred Submitter
over 1 year ago
hrishibhat Lead Judge over 1 year ago
Submission Judgement Published
Invalidated
Reason: Known issue
Assigned finding tags:

Arbitrum-sequncer

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