Unconditional EMC => usd1 swap will fail if reserve ratio ≤ 100%
Summary
The unconditional EMC => usd1 swap will fail if reserve ratio goes below 100%
Vulnerability Detail
The burn of any EMC, such as usd91 is unconditional according to the docs. In the case, an EMC has to be swapped (burned) for usd1 in a ratio below 100%, the swap will fail due to the EMC being paused.
stopthecap
high
Unconditional EMC => usd1 swap will fail if reserve ratio ≤ 100%
Summary
The unconditional EMC => usd1 swap will fail if reserve ratio goes below 100%
Vulnerability Detail
The burn of any EMC, such as
usd91is unconditional according to the docs. In the case, an EMC has to be swapped (burned) forusd1in a ratio below 100%, the swap will fail due to the EMC being paused.https://github.com/sherlock-audit/2023-04-unitasprotocol/blob/d5328421bea80e3b0fd4595e4eb6b732a40e421e/Unitas-Protocol/src/ERC20Token.sol#L184
As you can see, https://github.com/sherlock-audit/2023-04-unitasprotocol-0xffff11/tree/main/Unitas-Protocol#reserve-ratio--100 if the reserve ratio is below 100% they pause all type of mintings
Impact
Unable to swap back EMCs to
usd1below a 100% reserve ratioCode Snippet
https://github.com/sherlock-audit/2023-04-unitasprotocol/blob/d5328421bea80e3b0fd4595e4eb6b732a40e421e/Unitas-Protocol/src/ERC20Token.sol#L184
Tool used
Manual Review
Recommendation
Do not pause both functionalities (mint and burn) at the same time