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

Faulty getUtilizationRate() function in RAACMinter breaks emissionRate calculation

notbozho

Faulty getUtilizationRate() function in RAACMinter breaks emissionRate calculation

Summary

The RAACMinter#getUtilizationRate() function is intended to calculate the utilization rate of the lending pool by dividing the total borrowed amount by the total deposited amount and returning a value in BPS between 0 and 100.

Vulnerability Details

Currently, RAACMinter#getUtilizationRate() is implemented as follows:

/**
* @dev Calculates the current system utilization rate
* @return The utilization rate as a percentage (0-100)
*/
function getUtilizationRate() internal view returns (uint256) {
šŸ“Œ uint256 totalBorrowed = lendingPool.getNormalizedDebt();
uint256 totalDeposits = stabilityPool.getTotalDeposits();
if (totalDeposits == 0) return 0;
return (totalBorrowed * 100) / totalDeposits;
}

RAACMinter.sol#237

We can observe that, instead of retrieving the total debt from the lending pool, the function fetches the usageIndex, which is a normalized value of the total debt and has 27 decimals by default.

/**
* @notice Gets the reserve's normalized debt
* @return The normalized debt (usage index)
*/
function getNormalizedDebt() external view returns (uint256) {
šŸ“Œ return reserve.usageIndex;
}

LendingPool.sol#609

// @audit default value of usageIndex is 1e27
reserve.usageIndex = uint128(WadRayMath.RAY);

LendingPool#196

Impact

This causes the function to return a value far above 100, rendering the logic for utilizationTarget in calculateNewEmissionRate() ineffective.

Tools Used

Manual review

Recommendations

Add the following function to both LendingPool.sol and ILendingPool.sol:

function getTotalUsage() external view returns (uint256) {
return reserve.totalUsage;
}

Then, update the totalBorrowed variable to:

uint256 totalBorrowed = lendingPool.getTotalUsage();
Updates

Lead Judging Commences

inallhonesty Lead Judge 7 months ago
Submission Judgement Published
Validated
Assigned finding tags:

RAACMinter::getUtilizationRate incorrectly mixes stability pool deposits with lending pool debt index instead of using proper lending pool metrics

inallhonesty Lead Judge 7 months ago
Submission Judgement Published
Validated
Assigned finding tags:

RAACMinter::getUtilizationRate incorrectly mixes stability pool deposits with lending pool debt index instead of using proper lending pool metrics

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