Closed code423n4 closed 3 years ago
88mph decreases the offered interest rate for longer deposits because the longer it is the more uncertain we are about the average floating rate during the deposit period, so this is by design.
As it is expected behavior, closing as invalid.
Handle
cmichel
Vulnerability details
Vulnerability Details
The
LinearDecayInterestModel
computes theinterestAmount
on a deposit asdepositAmount * moneyMarketInterestRatePerSecond * IRMultiplier * depositPeriodInSeconds
where theIRMultiplier
is a function of thedepositPeriodInSeconds
computed in:The higher the duration the lower the interest amount, if the duration is long enough no interest will be returned.
Impact
I'd expect longer durations to lead to a higher percentage on the principal due to opportunity cost on the money. If I take a loan with a long maturity (
multiplierDecrease >= multiplierIntercept
) I get zero interest. Why would anyone do that?Recommended Mitigation Steps
I might not understand what the intention is or the multiplier is wrong.