ManagedLeveragedVault::increaseLeverage() will never work in Recovery mode
Summary
Recovery mode doesn't allow Dens to decrease their ICR. Hence, ManagedLeveragedVault::increaseLeverage() will revert when the protocol is in Recovery mode.
Vulnerability Detail
ManagedLeveragedVault::increaseLeverage() withdraws debt:
b$.borrowerOperations.withdrawDebt(
b$.denManager,
address(this),
_maxFeePercentage,
_debtAmount,
_upperHint,
_lowerHint
);But this is not possible in Recovery mode, as it requires that the new ICR is bigger than the old one.
Impact
DoSed increasing leverage.
Code Snippet
Tool Used
Manual Review
Recommendation
Nothing can be really done but it's something to keep in mind.