ak1 - increaseCollateralAmount : User is not allowed to increase collateral freely.

[github-actions]

ak1

medium

increaseCollateralAmount : User is not allowed to increase collateral freely.

Summary

For all the tree type of vault, a user is allowed to increase collateral only if the overall collateral value is higher than the margin value.

imo, this restriction may not be needed. anyway user is adding the collateral that could eventually save from liquidation.

Protocol will loose advantage due to this restriction.

Vulnerability Detail

Codes from lyra vault implementation :

https://github.com/sherlock-audit/2022-11-isomorph/blob/main/contracts/Isomorph/contracts/Vault_Lyra.sol#L155-L192

Line 184

    require(colInUSD >= borrowMargin, "Liquidation margin not met!");

For synth - Refer here

For velo - Refer here

Impact

User may not have the collateral all at once, but they can add like an EMI.

Protocol will loose the repayment anyway.

What is no one comes for liquidation - again this could lose.

Code Snippet

Refer vulnerability section

Tool used

Manual Review

Recommendation

Allow user add collateral freely.

[kree-dotcom]

Fixed kree-dotcom/isomorph@6b403ba

[IAm0x52]

Fixes look good. Liquidation margin check has been removed when adding collateral