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Findings:

  • [CRITICAL[ infinite money printing glitch (see below)
  • [CRITICAL] LegacyMarket.sol does not implement the onERC721Received function. As a result, calling migrate will always revert as minting an account token to itself will fail.
  • [CRITICAL] Accounts with an unhealthy collateralization ratio cannot be migrated. During migration, the call to associateDebt will validate that the debt association does not put the account into a state that can be liquidated. As a result, an account on v2 that should be liquidated cannot be moved to v3 if the collateralization ratios are the same between the two systems.
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