The Standard

Description:

When a vault is liquidated, the SmartVaultManagerV5 revokes the vault's right to burn and mint EURO, rendering it effectively useless. The MINTER_ROLE() and BURNER_ROLE() roles for EUROs are revoked and not granted back, even if the vaults are recredited. This is akin to rejecting a user from a lending protocol like GMX after they have been liquidated in the past, even if they return with a healthy position — but worse. This practice is wasteful, gas-inefficient, and a net negative for the entire blockchain network, as it introduces garbage data, essentially bloating the network. It is our duty as developers and security researchers to ensure the sanctity and maintenance of the blockchain network if we want to guarantee its sustainability.

Impact:

Every liquidated vault contributes to the accumulation of unnecessary data on its host blockchain network, increasing block space demand and consequently costs and centralization.

Tools Used:

• Manual review

Recommended Mitigation Steps:

Consider alternative design choices for the vault contracts that do not resort to dumping useless data on the blockchain and do not pose a threat to the security of the network.