What exactly does it mean when we say *USDC blacklists the contract*??

[PrashikshitSaini]

I mean I might have taken the statement wrong. But in the AssetToken.sol contract in Section 6 of the course, we ask the question that in function transferUnderlyingTo , What happens if the USDC blacklists the thunderLoan or the assetToken contract??

    function transferUnderlyingTo(address to, uint256 amount) external onlyThunderLoan {
        // @audit MED Is this the case of WeirdERc20 with the USDC? the protocol will be frozen and that it is bad
        // Q: What happens if the USDC blacklists the thunderloan or the assetToken contract?
        i_underlying.safeTransfer(to, amount);
    }

What does it mean, any help would be appreciated.

[EngrPips]

Hello @PrashikshitSaini, As you know, weird ERC20 exists, and one of those ERC20 tokens is USDC in the sense that it has a blacklist that is controlled by some sort of admin of the contract. So if USDC blacklists thunderloan contract or the assetToken contract, they won't b able to make a successful transaction on the USDC contract, which will cause a DOS and not just a DOS but a DOS that is totally out of our control.

[PrashikshitSaini]

Oh yes, after reading and watching the lecture carefully again I realize what's happening. Thank you for helping me out ser.

[EngrPips]

Anytime, Friend. Keep crushing it.