Description:
For a token like TUSD
, which has a proxy and a implementation contract, if the implementation behind the proxy is changed, it can introduce features which break the protocol.
Impact:
Protocol may break in future for this collateral and block user funds deposited as collateral. Also can cause bad loans to be present with no way to liquidate them.
Tools Used:
Manual Review.
Recommended Mitigation:
Have a token whitelist that does not allow such tokens.
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