Incorrect Scaling of Total Supply in DebtToken Contract
Summary
The totalSupply() function in the DebtToken contract uses rayDiv to scale the total supply by the normalized debt. However, the scaling should be done using rayMul .
Vulnerability Details
The code divides the total supply by the normalized debt using rayDiv. This may not be correct, as the normalized debt should be applied to the total supply through multiplication (rayMul), not division. Using rayDiv instead of rayMul might lead to inaccurate scaling and result in an incorrect total supply value.
Impact
Misrepresentation of the total supply, which could lead to incorrect debt tracking, interest calculations, and other protocol interactions that rely on this value.
Tools Used
Manual review
Recommendations
Update the totalSupply() function to use rayMul instead of rayDiv for proper scaling
Lead Judging Commences
DebtToken::totalSupply incorrectly uses rayDiv instead of rayMul, severely under-reporting total debt and causing lending protocol accounting errors
DebtToken::totalSupply incorrectly uses rayDiv instead of rayMul, severely under-reporting total debt and causing lending protocol accounting errors
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