repayBorrow() with cToken

I like this idea. It’s so natural that had it been included in the protocol at the start we wouldn’t give it another thought.

Back when we were discussing whether to include WBTC as an asset, there was concern about infinite minting and pausing of WBTC. I proposed a wrapped version (wWBTC) as a way to enable a supply cap (by limiting the amount of wWBTC that could be minted) and to insulate against pauses. But that added a undesired layer of complexity. I don’t think it occurred to us that cWBTC could provide the pause protection on its own.

I would extend the current proposal to also add a new liquidateBorrow() method that accepts CTokens as the repaid asset. That would allow liquidations to proceed as designed even if the repaid underlying is paused, so long as there is a liquid market for the CTokens. I expect that anything serious enough to trigger a pause would be accompanied by volatile market conditions, so it’s important that the liquidation system continues to operate in that scenario.

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