CS-BOLD-014 Informational 7.2: Bypassing Collateral Adjustment Check

[bingen]

The check BorrowerOperations._requireValidAdjustmentInCurrentMode prevents reducing collateral in undercollateralized troves (ICR < MCR).

It can be bypassed through self-redemptions, by first adjusting the interest rate of the trove to be the lowest in the branch, then redeeming from it.

[bingen]

That workaround would:

• Reduce the size of an undercollateralized trove
• Improve the ICR of an undercollateralized trove
  So it’s not bad for the system.

That condition prevents the final state to be undercollateralized. So the only way to use that workaround and still end up with ICR < MCR is the trove was already undercollateralized. It doesn’t allow to convert a healthy trove into an undercollateralized one.

Therefore, we accept it for simplicity of the code.