Core Contracts

Regnum Aurum Acquisition Corp
HardhatReal World AssetsNFT
77,280 USDC
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Submission Details
Severity: high
Valid

Excessive Debt Minting in DebtToken::mint

The DebtToken::mint function adds balanceIncrease to amount before minting, causing debt to compound incorrectly:

uint256 amountToMint = amount + balanceIncrease;
_mint(onBehalfOf, amountToMint.toUint128());

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 balanceIncreasewhen minting. This ensures debt only increases due to the interest model and not erroneously on each borrow.

Updates

Lead Judging Commences

inallhonesty Lead Judge 3 months ago
Submission Judgement Published
Validated
Assigned finding tags:

DebtToken::mint miscalculates debt by applying interest twice, inflating borrow amounts and risking premature liquidations

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