Rebalancing Failures

[UlyanaAndrukhiv]

Context

Current Gap: Tests cover successful rebalancing, need failure scenarios.

Missing Test Coverage:

• Insufficient TopUpSource Funds

  • Position undercollateralized
  • Rebalance requires 100 MOET
  • topUpSource only has 50 MOET
  • Rebalance fails or partial execution
  • Position remains undercollateralized

• Malicious TopUpSource

  • topUpSource always reverts on withdrawal
  • Prevents rebalancing
  • Enables liquidation that could have been avoided
  • Attack vector for forcing liquidations

• DrawDownSink Rejection

  • Position overcollateralized
  • Rebalance pushes surplus to drawDownSink
  • drawDownSink rejects deposit (e.g., full capacity)
  • Rebalance fails, position remains overcollateralized

• Rebalance Gas Limits

  • Complex rebalance operation
  • Multiple swaps through connectors
  • Gas cost exceeds block limit
  • Transaction fails, position not rebalanced

• Circular Dependencies

  • Position A topUpSource = Position B
  • Position B topUpSource = Position A
  • Both positions need rebalancing
  • Circular dependency deadlock

• Concurrent Rebalances

  • Position A and Position B both trigger rebalance
  • Both attempt to pull from same liquidity source
  • First succeeds, second fails
  • Handling of failed rebalance

Recommended Tests:

Test: Rebalance needs 100 MOET, topUpSource has 50, fails gracefully
Test: topUpSource always reverts, rebalance fails, position can be liquidated
Test: drawDownSink rejects deposit, rebalance fails
Test: Rebalance operation exceeds gas limit
Test: Position A and B have circular topUpSource dependency
Test: Two positions trigger rebalance, share same source, first succeeds