Spearbit: Sandwhich Sniper Exploit

ebtc-protocol / ebtc

GNU General Public License v3.0

56 stars 25 forks source link

Spearbit: Sandwhich Sniper Exploit #507

Open GalloDaSballo opened 1 year ago

GalloDaSballo commented 1 year ago

https://discord.com/channels/883432404780466176/1118240163093565561/1126566202433622056

Suggested Mitigation

Model the math around this attack, to determine profitability at different TVLs

GalloDaSballo commented 1 year ago

We have to figure out if we need to remove Recovery Mode and the implications of it

GalloDaSballo commented 1 year ago

This puts a "hard cap" on the system being able to handle at most 6k BTC in liquidations before some liquidations are guaranteed to be unprofitable and lock in bad debt

It's worth modelling these scenarios to figure out what would happen if that amount of eBTC had to be liquidated