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Torque-Money / Dev-Environment

Smart contract dev environment.
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Swap tolerance #26

Closed BenGOsborn closed 2 years ago

BenGOsborn commented 2 years ago

Make sure that there is no exploitation of the pools value that could occur via this swap tolerance.

BenGOsborn commented 2 years ago

After further exploration this seems to be safe for the following reasons:

The pool has not lost any of its assets, but only a fraction of the value of the assets - in the case that the pool collects slightly less collateral to make up for the loss in value it has incurred it is very minor considering this is expected to only happen 50% of the time, and most of the time interest will make up for it.

In addition to this, if a user had malicious intent to destroy the value of the pool in the case of a market crash, they would have to exploit the pool for the bare minimum price every time over and over again while sacrificing their own collateral in the process.