Submission Details
Severity:
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 6 months ago
Submission Judgement Published Assigned finding tags:
DebtToken::mint miscalculates debt by applying interest twice, inflating borrow amounts and risking premature liquidations
Prize pool breakdown
Total prize
77,280 USDC
nSLOC
3,86420
USDC / LOC
74,000
3,280
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