Potential risks in lending protocol

[LouisTsai-Csie]

Summary

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What are the typical security concerns associated with lending protocols, and how can these issues be addressed? An example is the liquidation mechanism, a critical component in a lending system. If not well-designed, it can result in bad debt and potentially disrupt the entire system.

Description

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Numerous common challenges arise when designing a lending system, encompassing collateral calculation, the liquidation mechanism, and oracle design. Please research into these issues and help devise effective mitigation strategies.

Source

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Solodit: Please search lending related report.

Lending/Borrowing DeFi Attacks

Common fork bugs

An empirical study of DeFi liquidations: incentives, risks, and instabilities

Others

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None

[ooyang0325]

Hi TA, I would like to write the final report about this topic, please assign me to this issue, thanks!

[LouisTsai-Csie]

@ooyang0325 Done, have fun with this topic

[leeyoyo49]

Hi TA, I would like to write my final report about this topic, can you assign me to this issue？ thx

[LouisTsai-Csie]

@leeyoyo49 Done, please let me know if you have any question.

[joslefaure]

Hi TA, I would like to write about this topic. Thanks

[LouisTsai-Csie]

@joslefaure Done, please check.