There isn't any function used to calculate default payouts in the protectionpool incase of a default event occurrying causing the whole mechanism of the system to break.
Vulnerability Detail
The protocol is non-custodial automated market maker where buyers of a protection hedge against a default risk of a specific underlying lending pool. Therefore, if a lending pool defaults buyers of the protections should be paid out. unfortunately, there isn't any way of calculating default payouts which renders the mechanism of the system.
Impact
This is a critical severity issue in that, not only is default payouts used to pay buyers of protections but it is also used in calculating the totalStokenunderlying hence providing wrong information for the function getpooldetails. Also it will lead to wrong figures when calculating the exchange rate in the function _getexchangerate__.
Code Snippet
Tool used
Manual Review
Recommendation
add a function to calculate default payouts in the protection pool
Auditwolf
high
missing default payouts calculation
Summary
There isn't any function used to calculate default payouts in the protectionpool incase of a default event occurrying causing the whole mechanism of the system to break.
Vulnerability Detail
The protocol is non-custodial automated market maker where buyers of a protection hedge against a default risk of a specific underlying lending pool. Therefore, if a lending pool defaults buyers of the protections should be paid out. unfortunately, there isn't any way of calculating default payouts which renders the mechanism of the system.
Impact
This is a critical severity issue in that, not only is default payouts used to pay buyers of protections but it is also used in calculating the totalStokenunderlying hence providing wrong information for the function getpooldetails. Also it will lead to wrong figures when calculating the exchange rate in the function _getexchangerate__.
Code Snippet
Tool used
Manual Review
Recommendation
add a function to calculate default payouts in the protection pool