c4-bot-10 commented 7 months ago

Lines of code

Vulnerability details

C4 Issue

M-20: Tokens can't be removed as a collateral without breaking liquidations and other core functions

Issue Details

The issue was that disabling collateral tokens inside V3Vault.sol had the unintended side effect of making V3Vault.liquidate() revert, DOSing liquidations for unhealthy positions that are collateralized with the disabled token

Mitigation

PR-25 mitigates the issue of liquidations getting broken, by introducing a check if collateralValue is 0. However there is another serious problem stemming from the root cause of this issue that is not mitigated with the changes in the PR.

Conclusion

The PR implements a fix that prevents liquidation from getting blocked as described in the original issue, that's why I'm marking this as mitigated.

However there is another serious issue stemming from the same root cause as this one, which I've submitted separately. The submission is titled:

Healthy position owners can be liquidated immediately once a token is disabled

c4-judge commented 7 months ago

jhsagd76 marked the issue as satisfactory