Pausable Tokens like USDC can cause liquidation to Fail #639
Labels
2 (Med Risk)
Assets not at direct risk, but function/availability of the protocol could be impacted or leak value
bug
Something isn't working
🤖_27_group
AI based duplicate group recommendation
sufficient quality report
This report is of sufficient quality
Lines of code
https://github.com/code-423n4/2024-05-predy/blob/main/src/libraries/logic/LiquidationLogic.sol#L99
Vulnerability details
Vulnerability Details
During liquidation, the remaining margin is transferred back to the trader.
Tokens like USDC can be paused, this means that during the pause state liquidation cannot occur, because the transfer will be blocked.
Impact
Impact, loss of funds to the protocol as Liquidatable positions can't be liquidated.
Tools Used
Manual
Recommended Mitigation Steps
Move all transfer logic out of the liquidation.
Assessed type
Token-Transfer
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