Submitted by rvierdiiev, also found by ladboy233 and 0x73696d616f
When users deposit wLP tokens as collateral, then they are checked to be whitelisted.
Later, its possible that for some reason wLP token will be blacklisted by governor. And once its done, then users who already used that wLP token as collateral will not be able to withdraw them.
Also same thing exists for the liquidateWLp function, which means that in case if position, that is collateralized with wLP that is blacklisted, will become unhealthy, then liquidators will not be able to liquidate it.
Sponsor said that blacklisting flow will be as following.
Considering this fact I realize that for liquidation this will not be an issue as wLp will have 0 collateralization power when it will be blacklisted. However its still possible that some users will not decollateralize their wLp tokens yet for some reasom and thus they will not be able to withdraw them later.
User cant withdraw previously deposited wLP tokens after they were blacklisted.
VsCode
Even if wLP token is blacklisted now, you still should allow user to withdraw them. After all you have health check function that will guarantee that position has enough collateral.
fez-init (INIT) acknowledged and commented:
