Submitted by mrMorningstar, also found by 0xGondar, bumbleb33, bumbleb33, and Evo
https://github.com/code-423n4/2024-12-lambowin/blame/874fafc7b27042c59bdd765073f5e412a3b79192/src/rebalance/LamboRebalanceOnUniwap.sol#L62
The protocol have a vETH token that aims to be pegged to the ETH so the ration of vETH -> ETH = 1:1. When depeg happens the protocol can mitigate that via rebalance function in LamboRebalanceOnUniwap that looks like this:
This function is designed to rebalance ratio by taking a flashloan from MorphoVault, which will be used on UniswapV3 to make a swap, while at the same time make sure there is a profit for the caller which later can be transferred via the extractProfit function in the same contract.
