Wrong else if() statement could break the protocol rules .

Affected Smart contracts VesselManagerOperations.sol

Impact

Wrong else if() statement could break the protocol rules
Even [SP GRAI > Vessel debt] fraction of the Vessel's collateral is shared between depositors and the coll and debt will get redistributed to active vessels through _getOffsetAndRedistributionVals()

Severity High because it breaks the protocol rules and loss to liquidator .

code snippet:- https://github.com/Gravita-Protocol/Gravita-SmartContracts/blob/main/contracts/VesselManagerOperations.sol#L706-L728

Description :- Document states that .

100% < ICR < MCR & SP GRAI > Vessel debt :-

GRAI in the Stability Pool equal to the Vessel's debt is offset with the Vessel's debt. The Vessel's collateral (minus compensation) is shared between depositors.

100% < ICR < MCR & SP GRAI< Vessel debt :-

The total Stability Pool GRAI is offset with an equal amount of debt from the Vessel. A fraction of the Vessel's collateral (equal to the ratio of its offset debt to its entire debt) is shared between depositors. The remaining debt and collateral (minus compensation) is redistributed to active Vessels.

But in line 706 code looks like even [SP GRAI > Vessel debt] it will calculate fraction of vessel collateral will be shared depsositors through _getOffsetAndRedistributionVals() and comments states like below :-

If the vessel's debt is larger than the deposited debt token in the Stability Pool:

Offset an amount of the vessel's debt equal to the debt token in the Stability Pool
Send a fraction of the vessel's collateral to the Stability Pool, equal to the fraction of its offset debt .

And there is no check in _getOffsetAndRedistributionVals() to whether vessel's debt is larger than the deposited debt token in the Stability Pool . It simply calculates even [SP GRAI > Vessel debt] .

Recommedation :- Change like this :-


else if ((_ICR > adminContract._100pct()) && (_ICR < adminContractCached.getMcr(_asset))) {
            vesselManagerCached.movePendingVesselRewardsToActivePool(_asset, vars.pendingDebtReward, vars.pendingCollReward);
            vesselManagerCached.removeStake(_asset, _borrower);

if( SP GRAI< Vessel debt ){ ///add  if statement .
            (
                singleLiquidation.debtToOffset,
                singleLiquidation.collToSendToSP,
                singleLiquidation.debtToRedistribute,
                singleLiquidation.collToRedistribute
            ) = _getOffsetAndRedistributionVals(
                singleLiquidation.entireVesselDebt,
                vars.collToLiquidate,
                _debtTokenInStabPool
            );

} ```

Gravita-Protocol / Gravita-SmartContracts

Wrong else if() statement could break the protocol rules . #289