yy
high
The code does not explicitly check if a borrower has sufficient collateral before allowing them to borrow funds.
The code snippet does not include specific checks or validations to ensure that a borrower has sufficient collateral when borrowing funds. Borrowers can borrow money without having enough collateral to cover their debt. Without proper collateral coverage, the borrowing process may proceed.
One of the example: The borrower supplies collateral assets in market. However, the value of the borrower's collateral in Market A decreases significantly, either due to market fluctuations or a decline in the collateral's value.
As a result, the value of the borrower's collateral in the market falls below the required collateralization ratio for the borrowed funds.
significant losses for the lending protocol
https://github.com/sherlock-audit/2023-05-ironbank/blob/main/ib-v2/src/protocol/pool/IronBank.sol#L480 https://github.com/sherlock-audit/2023-05-ironbank/blob/main/ib-v2/src/protocol/pool/IronBank.sol#L1065
Manual Review
implement a mechanism that performs collateral checks before allowing borrowers to borrow funds. Also, consider implementing a collateralization ratio requirement, where borrowers must maintain a minimum collateral value relative to the borrowed asset value.