Submitted by minhquanym
https://github.com/code-423n4/2022-11-paraspace/blob/c6820a279c64a299a783955749fdc977de8f0449/paraspace-core/contracts/misc/UniswapV3OracleWrapper.sol#L176
In Paraspace protocol, any Uniswap V3 position that are consist of ERC20 tokens that Paraspace support can be used as collateral to borrow funds from Paraspace pool. The value of the Uniswap V3 position will be sum of value of ERC20 tokens in it.
However, Uniswap V3 can have multiple pools for the same pairs of ERC20 tokens with different fee params. A fews has most the liquidity, while other pools have extremely little TVL or even not created yet. Attackers can abuse it, create low TVL pool where liquidity in this pool mostly (or fully) belong to attackers position, deposit this position as collateral and borrow token in Paraspace pool, swap to make the original position reduce the original value and cause Paraspace pool in loss.
Consider the scenario where WETH and DAI are supported as collateral in Paraspace protocol.
Please note that the math Ive done above is approximation based on Uniswap V2 formula x * y = k because Alice provided liquidity from MIN_TICK to MAX_TICK.
For more information about Uniswap V3 formula, please check their whitepaper here: https://uniswap.org/whitepaper-v3.pdf.
Consider adding whitelist, only allowing pool with enough TVL to be collateral in Paraspace protocol.
LSDan (judge) commented: 
minhquanym (warden) commented:
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