Core Contracts

Summary

User cannot repay & close their liquidation position during paused market, potentially leading to forced liquidation despite having ability to repay.

Vulnerability Details

In the LendingPool contract, the closeLiquidation() function has a whenNotPaused modifier that prevents users from closing their liquidation position during market pause.

Example Scenario:

1. User enters liquidation state

2. Market gets paused

3. User has funds to repay but cannot close liquidation

4. Grace period continues counting down

5. User may get liquidated after grace period despite having ability to repay

Impact

• Users lose collateral despite having ability to repay &

• Unfair liquidations due to market pause

Tools Used

• Manual Review

Recommendations

• Allow repayments and liquidation closure during pause state or add a buffer to positions underLiquidation when the market gets paused