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It's possible for debt to be stuck in the LoopedVault when rebalancing from Aave to Morpho

Low/InfoYieldoor LoopedVault Update·0xSimao · Leveraged yield farming · 23rd June 2025L-2

Description:

RebalanceLogic::aaveToMorpho() borrows from Morpho and repays Aave debt. If trying to repay more Aave debt than the available, the function will go through but borrow tokens will be left in the LoopedVault. This is not an issue in case the borrow token is $USDC, the asset of the vault, as it is accounted for as LoopedVault::idleBalance(). However, if the borrowed token is for example $DAI, it will not be accounted for and cause issues.

Recommended Mitigation:

Revert if trying to repay more debt than the available (default Morpho behaviour).