Submission Details
Severity:
Users are not incentivized to liquidate users with bad health factor which can cause bad debt accumulation
Author Revealed upon completion
Summary
Users are not incentivized to liquidate users with bad health factor which can cause bad debt accumulation if no one decides to trigger liquidation
Vulnerability Details
/**
* @notice Allows anyone to initiate the liquidation process if a user's health factor is below threshold
* @param userAddress The address of the user to liquidate
*/
// @audit no incentive to initiateLiquidation for the msg.sender
function initiateLiquidation(address userAddress) external nonReentrant whenNotPaused {
if (isUnderLiquidation[userAddress]) revert UserAlreadyUnderLiquidation();
// update state
ReserveLibrary.updateReserveState(reserve, rateData);
UserData storage user = userData[userAddress];
uint256 healthFactor = calculateHealthFactor(userAddress);
if (healthFactor >= healthFactorLiquidationThreshold) revert HealthFactorTooLow();
isUnderLiquidation[userAddress] = true;
liquidationStartTime[userAddress] = block.timestamp;
emit LiquidationInitiated(msg.sender, userAddress);
}
Impact
It could cause bad debt accumulation
Recommendations
Give a small bonus to user triggering liquidation
Prize pool breakdown
Total prize
77,280 USDC
nSLOC
3,86420 USDC / LOC
74,000
3,280
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