The Standard

Impact

Abrupt liquidation of vaults even if vault goes undercollaterized by a very minimal amount due to flash price changes leading to parties frustration.

Proof of Concept

Protocol implements an underCollaterized() function which gets called while liquidating via liquidate() to see if there is enough collateral or not, case is that this logic is a bit too strict and might lead to unfair liquidation s due to the volatility in the market right now coupled with the fact that the crypto bull run seems to be somewhat kicking off

Recommended Mitigation Steps

Providing some sort of buffer like other protocols can be used here to mitigate this issue, i.e like AAVE: https://docs.aave.com/faq/liquidations

A simple example in this case would be to implement a 50% liquidation if health factor is between 0.8 to 0.9 and then after 0.9 full liquidation so there'll be an availability of some buffer time to respond.