Platform: Code4rena
Start Date: 05/04/2022
Pot Size: $30,000 USDC
Total HM: 10
Participants: 47
Period: 3 days
Judge: gzeon
Total Solo HM: 4
Id: 106
League: ETH
Rank: 43/47
Findings: 1
Award: $51.87
🌟 Selected for report: 0
🚀 Solo Findings: 0
🌟 Selected for report: IllIllI
Also found by: 0v3rf10w, 0x1f8b, 0xDjango, 0xkatana, BouSalman, CertoraInc, Dravee, FSchmoede, Hawkeye, Kenshin, Meta0xNull, PPrieditis, Ruhum, TerrierLover, VAD37, WatchPug, berndartmueller, csanuragjain, hake, horsefacts, hubble, m9800, rayn, reassor, robee, samruna, securerodd, shenwilly, sorrynotsorry, t11s, teryanarmen, tintin, z3s
51.8678 USDC - $51.87
Borrower can create a loan with a small amount and duration then seize back their collateral(NFTLoanFacilitator.sol)
In the case that the collateral is a rare NFT, the borrower can spam the protocol inorder to cause FOMO around gaining an NFT (in the event that the borrower defaults on the loan) forcing prospective lenders to offer a very high amount(lenders will be on the look out to be offering the best terms) of principal once the borrower decides to recreate a loan with the same NFT.
After talking to the Dev, he mentioned that he isn't keen on preventing such occurrence. But after contemplation, I think it would still be noteworthy to mention.