Protocol might enter a state of doubt, where stakers won't stake in fear that the government would execute a reset

[code423n4]

Lines of code

https://github.com/reserve-protocol/protocol/blob/99d9db72e04db29f8e80e50a78b16a0b475d79f3/contracts/p1/StRSR.sol#L490-L500

Vulnerability details

In case the protocol is in a situation where the remaining value is borderline worth resetting, we might enter a state where for a long time users won't stake in fear that a reset might be executed. This will keep going on till either a reset is executed or enough is staked to exit the borderline situation.

Assessed type

Other

[0xean]

I believe the sponsor is aware that there is no perfect solution here and certainly welcome their comments. @c4-sponsor

[c4-judge]

0xean marked the issue as satisfactory

[5z1punch]

IMO, I think this kind of risk is acceptable. It's by design.

[c4-sponsor]

tbrent marked the issue as sponsor acknowledged

[c4-sponsor]

tbrent marked the issue as disagree with severity

[tbrent]

We are aware there is no perfect solution here and do not see a better way to do it. Appreciation means there is no way to prevent the system from eventually reaching a "too high" state, whether that "too high" is a hard limit or a soft limit. We think this is likely QA.

[c4-judge]

0xean changed the severity to QA (Quality Assurance)

[c4-judge]

0xean marked the issue as grade-a