@rdin777
Headline: DeFi logic is only as good as its edge cases. 🛡️
I just published a post-mortem on a "design choice" in Aave V4 that turned into a $195M liquidation deadlock during the rsETH crash.
The issue: Strict intermediate overflow checks in MathUtils.mulDivDown (src/spoke/libraries/LiquidationLogic.sol:329).
The Reality:
When a whale position (like Lazarus Group's rsETH dump) hits the liquidation threshold, the dynamic bonus calculation overflows and triggers a REVERT.
A "safe" revert in theory = Unstoppable Bad Debt in practice. 💀
I reported this 2 months ago. It was dismissed as "intended design".
Full PoC and write-up:
🔗 [dev.to/rdin777/how-aave-v4s-design-choice-turned-into-a-195m-liquidation-deadlock-kelpdaorseth-case-57kk]
📂 [github.com/rdin777/aave-v4-post-mortem]
cc @aave @stani.eth
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