Core Contracts

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

Liquidation system does not work

Summary

Once a user is liquidated, collateral NFT is transferred to the stability pool however the stability pool lacks the call to liquidate the NFT, making the NFT stuck and protocol is unable to cover debt by liquidating NFTs.

Vulnerability Details

Whenever a user needs to be liquidated, after certain conditions are met, stability pool will finalize liquidation. This will transfer the NFT to stability pool to liquidate it.
The stability pool contract does not have a call to NFTLiquidator's liquidateNFT function.

Impact

Protocol will not be able to cover bad debt and liquidation all around does not work.

Recommendations

N/A

Updates

Lead Judging Commences

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

Liquidated RAACNFTs are sent to the StabilityPool by LendingPool::finalizeLiquidation where they get stuck

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