Rebalancing of liquidity not done after liquidation/repay leading to reduced profits
Summary
The rebalance of liquidity (20% in rToken and 80 % in curveVault) is done so as to gain interest on the liquidity present in the protocol. So after a repay/liquidation when rebalancing is not done, more funds will remain in the lendingPool.sol which will gain 0 interest. This is a case of reduced profits for the protocol.
Vulnerability Details
After funds transfer in the lendingPool the rebalance is done (only not done in the case of repay and liquidation). This will result in a reduced profit gain from the curveVault interest for the protocol.
Impact
reduced profits
Tools Used
manual review
Recommendations
add the rebalance liquidity after repay and liquidation is done.
Lead Judging Commences
LendingPool::finalizeLiquidation or repay doesn't call _rebalanceLiquidity, leaving excess funds idle instead of depositing them in Curve vault for yield
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