The Standard

The Standard
DeFiHardhat
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Submission Details
Severity: medium
Invalid

LiquidationPool will use the wrong price if the Chainlink registry returns price outside min/max range

Summary

Chainlink aggregators have a built in circuit breaker if the price of an asset goes outside of a predetermined price band. The result is that if an asset experiences a huge drop in value (i.e. LUNA crash) the price of the oracle will continue to return the minPrice instead of the actual price of the asset.

Vulnerability Details

This would allow user to continue borrowing with the asset but at the wrong price. This is exactly what happened to Venus on BSC when LUNA imploded.
More details https://medium.com/cyfrin/chainlink-oracle-defi-attacks-93b6cb6541bf#00ac

Impact

The wrong price may be returned in the event of a market crash. An adversary will then be able to borrow against the wrong price and incur bad debt to the protocol.

Tools Used

Manual review

Recommended Mitigation Steps

Implement the proper check for each asset.

Updates

Lead Judging Commences

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

chainlink-minanswer

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

chainlink-minanswer

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