If a token's oracle goes down or price falls to zero, liquidations will be frozen
Severity
Medium Risk
Summary
Chainlink has taken oracles offline in extreme cases. For example, during the UST collapse, Chainlink paused the UST/ETH price oracle, to ensure that it wasn't providing inaccurate data to protocols.If the oracle price lookup reverts, liquidations will be frozen, and the user will be immune to liquidations.
Vulnerability Details
In DSCEngine.sol
function _getUsdValue(address token, uint256 amount) private view returns (uint256) {
AggregatorV3Interface priceFeed = AggregatorV3Interface(s_priceFeeds[token]);
(, int256 price,,,) = priceFeed.staleCheckLatestRoundData();
//@audit ChainlinkAdapterOracle will return the wrong price for asset if underlying aggregator hits minAnswer
//@audit check for sequencer on arbitrum or l@ chains
// 1 ETH = 1000 USD
// The returned value from Chainlink will be 1000 * 1e8
// Most USD pairs have 8 decimals, so we will just pretend they all do
// We want to have everything in terms of WEI, so we add 10 zeros at the end
return ((uint256(price) * ADDITIONAL_FEED_PRECISION) * amount) / PRECISION;
}
Impact
Liquidations may not be possible at a time when the protocol needs them most. As a result, the value of user's asset may fall below their debts, turning off any liquidation incentive and pushing the protocol into insolvency.
Tools Used
Manual Review
Recommendations
Ensure there is a safeguard in place to protect against this possibility.
If a token's oracle goes down or price falls to zero, liquidations will be frozen
Severity
Medium Risk
Summary
Chainlink has taken oracles offline in extreme cases. For example, during the UST collapse, Chainlink paused the UST/ETH price oracle, to ensure that it wasn't providing inaccurate data to protocols.If the oracle price lookup reverts, liquidations will be frozen, and the user will be immune to liquidations.
Vulnerability Details
In DSCEngine.sol
Impact
Liquidations may not be possible at a time when the protocol needs them most. As a result, the value of user's asset may fall below their debts, turning off any liquidation incentive and pushing the protocol into insolvency.
Tools Used
Manual Review
Recommendations
Ensure there is a safeguard in place to protect against this possibility.