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ManagedLeveragedVault::increaseLeverage() fails when the debt is closed to the limit

MediumBeraborrow Managed Dens·Sherlock · CDP stablecoin · 25th April, 2025M-4

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Summary

ManagedLeveragedVault::increaseLeverage() will revert when the protocol is close to the max debt as it needs to borrow more than the debt allows in order for the ICR to reach the target.

Vulnerability Detail

ManagedLeveragedVault::increaseLeverage() check is too strict requiring that the final ICR is very close to the target:

solidity
_checkInvariantICR(getCurrentDenICR(), getTargetICR(), Tolerance.ABOVE);

Thus, it will not be possible to increase the leverage, even if this change would bring it closed to the target ICR.

Impact

Smaller leverage than intended.

Code Snippet

https://github.com/sherlock-audit/2025-04-beraborrow-vault-update/pull/1/files#diff-2d972f52027e0ba1065b2de2b424416244bfef9e2a79d2604e1687867f72c91eR449

Tool Used

Manual Review

Recommendation

Allow the ICR to be higher than the target as long as it is above it.