Submitted by CertoraInc
Decimals limitation limits the tokens that can be used.
Lets give some name to the decimals of certain numbers:
n = decimals of numerator oracle.
d =  decimals denominator oracle.
a = decimals of the asset.
c= decimals of the collateral.
Now, the oracleNormalization = 10 ^(18 + n - d + a - c).
And here: https://github.com/code-423n4/2022-08-frax/blob/main/src/contracts/FraxlendPairCore.sol#L536 , price has decimals of 36 + n -d, so here() when we calculate _exchangeRate = _price / oracleNormalization; it would underflow and revert if a >18 +c.
And thats a pretty big limitation on the tokens options. We have USDC which have 6 decimals so all the tokens the their decimals < 24 are not possible to use in this system (with USDC together).
DrakeEvans (Frax) disputed, disagreed with severity and commented:
gititGoro (judge) decreased severity to Medium and commented:
