The DebtToken::mint
function adds balanceIncrease
to amount
before minting, causing debt to compound incorrectly:
Since balanceIncrease
represents accrued interest already accounted for in the index, re-adding it results in excessive debt accumulation.
Impact: Users incur extra unintended debt, leading to incorrect balances and financial loss
Recommendation:
Exclude balanceIncrease
when minting. This ensures debt only increases due to the interest model and not erroneously on each borrow.
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