moneyversed
medium
Assets that can be paused for transfers can cause loans to become non-liquidatable, as liquidateLoan() would revert.
In the CollateralEscrowV1.sol contract, collateral assets that have the ability to pause transfers can lead to loans becoming non-liquidatable. When the liquidateLoan() function is called, it may revert if the collateral asset's transfer functionality is paused.
Manual Review
Implement checks to ensure that the collateral assets used in the protocol do not have pausing functionality or handle paused transfers appropriately. Consider adding a fallback mechanism to manage such cases and protect user assets.