Core Contracts

Summary

The RAACMinter::getUtilizationRate function incorrectly calculates the utilization rate because it relies on lendingPool.getNormalizedDebt(), which does not return the total borrowed amount. Instead, it returns the usageIndex, leading to an inaccurate utilization rate. This inaccuracy affects the calculation of the new emission rate, potentially causing reduced incentives for users.

Vulnerability Details

Source

• RAACMinter.sol#L240-L246

• LendingPool.sol#L609-L611

Code Snippet

However, the implementation of LendingPool::getNormalizedDebt returns usageIndex instead of the actual total borrowed amount:

This miscalculation impacts the emission rate adjustment in RAACMintercalculate::calculateNewEmissionRate:

Impact

• Incorrect Utilization Rate Calculation: The system operates under incorrect assumptions regarding total borrowed amounts which lead to incorrect utilization rate with inturn cause incorrect emissionRate thereby reducing Incentives

Tools Used

• Manual code review

Recommendation

Implement a function to return the scaled total supply of the debt token and use it in the RAACMinter::getUtilizationRate function instead of getNormalizedDebt.