User isn't able to leave the project i.e. return back value from NFT he minted
Summary
Protocol let the user to mint an NFT representing market value of some RWA asset and to do this user have to provide the value of that RWA property while minting a NFT.
Vulnerability Details
Meanwhile the user won't be able to return his funds he provided to mint the NFT. The only thing user is able to do is to take loan against his NFT and left with debt funds ( because of some LTV value he won't be able to receive whole amount)
Such design choice makes tokenization of property unconvinient and obviously leads to lose funds for users.
Impact
lose fund of users
Tools Used
Manual review
Recommendations
add ability to burn NFT and receive it's value back
Lead Judging Commences
RAACNFT lacks redemption mechanism, preventing NFT holders from exchanging tokens back for their underlying asset value and forcing reliance on secondary markets
Appeal created
RAACNFT lacks redemption mechanism, preventing NFT holders from exchanging tokens back for their underlying asset value and forcing reliance on secondary markets
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