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PASS
The final review score is indicated as a percentage. The percentage is calculated as Achieved Points due to MAX Possible Points. For each element the answer can be either Yes/No or a percentage. For a detailed breakdown of the individual weights of each question, please consult this document.
Very simply, the audit looks for the following declarations from the developer's site. With these declarations, it is reasonable to trust the smart contracts.
This report is for informational purposes only and does not constitute investment advice of any kind, nor does it constitute an offer to provide investment advisory or other services. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, token, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell or hold any security. The information in this report should not be relied upon for the purpose of investing. In preparing the information contained in this report, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.
Any views expressed in this report by us were prepared based upon the information available to us at the time such views were written. The views expressed within this report are limited to DeFiSafety and the author and do not reflect those of any additional or third party and are strictly based upon DeFiSafety, its authors, interpretations and evaluation of relevant data. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
This completed report is copyright (c) DeFiSafety 2023. Permission is given to copy in whole, retaining this copyright label.
This section looks at the code deployed on the Mainnet that gets reviewed and its corresponding software repository. The document explaining these questions is here.
1. Are the executing code addresses readily available? (%)
They are available at website https://docs.aave.com/developers/deployed-contracts/deployed-contracts, as indicated in the Appendix.
2. Is the code actively being used? (%)
Activity is 800 transactions a day on contract InitializableImmutableAdminUpgradeabilityProxy.sol, as indicated in the Appendix.
3. Is there a public software repository? (Y/N)
GitHub: https://github.com/aave/protocol-v2.
Is there a public software repository with the code at a minimum, but also normally test and scripts. Even if the repository was created just to hold the files and has just 1 transaction, it gets a "Yes". For teams with private repositories, this answer is "No"
4. Is there a development history visible? (%)
With 1630 commits and 40 branches in their protocol-v2, this is a robust software repository.
This metric checks if the software repository demonstrates a strong steady history. This is normally demonstrated by commits, branches and releases in a software repository. A healthy history demonstrates a history of more than a month (at a minimum).
5. Is the team public (not anonymous)? (Y/N)
Public team info found at https://www.linkedin.com/company/aaveaave.
For a "Yes" in this question, the real names of some team members must be public on the website or other documentation (LinkedIn, etc). If the team is anonymous, then this question is a "No".
This section looks at the software documentation. The document explaining these questions is here.
7. Are the basic software functions documented? (Y/N)
The AAVE software functions (code) are all well-documented in "The Core Protocol" section of their documentation.
8. Does the software function documentation fully (100%) cover the deployed contracts? (%)
9. Are there sufficiently detailed comments for all functions within the deployed contract code (%)
The Comments to Code (CtC) ratio is the primary metric for this score.
10. Is it possible to trace from software documentation to the implementation in code (%)
There is clear and explicit traceability between the documented software functions and their implementation within the AAVE source code. A good example of this can be seen here.
11. Full test suite (Covers all the deployed code) (%)
This score is guided by the Test to Code ratio (TtC). Generally a good test to code ratio is over 100%. However the reviewers best judgement is the final deciding factor.
12. Code coverage (Covers all the deployed lines of code, or explains misses) (%)
There is evidence of AAVE code coverage in their SigmaPrime audit report, however they do not explain skips or misses. In addition, they also have 99% codecov in their Governance repository.
13. Scripts and instructions to run the tests? (Y/N)
Scrips/Instructions location: Instructions to run tests can be found in the README.
14. Report of the results (%)
15. Formal Verification test done (%)
AAVE has had a Formal Verification test done by Certora.
16. Stress Testing environment (%)
There is evidence of AAVE Kovan test-net smart contract usage at https://docs.aave.com/developers/deployed-contracts/deployed-contracts.
This section looks at the 3rd party software audits done. It is explained in this document.
17. Did 3rd Party audits take place? (%)
Multiple high-quality AAVE audit reports were published before and after V1 and V2 deployment. The results were also implemented. These reports can be found at https://docs.aave.com/risk/audits/smartcontract-audits.
18. Is the bug bounty acceptable high? (%)
AAVE's Bug Bounty program offers up to 250k in rewards.
This section covers the documentation of special access controls for a DeFi protocol. The admin access controls are the contracts that allow updating contracts or coefficients in the protocol. Since these contracts can allow the protocol admins to "change the rules", complete disclosure of capabilities is vital for user's transparency. It is explained in this document.
19. Can a user clearly and quickly find the status of the access controls (%)
AAVE admin access control information can easily be found at https://docs.aave.com/developers/protocol-governance/governance.
20. Is the information clear and complete (%)
a) Some protocols are clearly labelled as immutable (i.e LendingPoolAddressesProvider), and others are clearly labelled as upgradeable.
21. Is the information in non-technical terms that pertain to the investments (%)
They have a technical and non-technical set of documentation.
22. Is there Pause Control documentation including records of tests (%)
The AAVE Pause Control function is called Pause Guardian and is documented in the governance subgraph and tests from May 2021 can be found at https://github.com/aave/governance-v2/blob/f16655ae3d91d6043c5e345f59c0111d8207771b/test/governance-admin.spec.ts.
1contract LendingPool is VersionedInitializable, ILendingPool, LendingPoolStorage {
2 using SafeMath for uint256;
3 using WadRayMath for uint256;
4 using PercentageMath for uint256;
5 using SafeERC20 for IERC20;
6
7 uint256 public constant LENDINGPOOL_REVISION = 0x2;
8
9 modifier whenNotPaused() {
10 _whenNotPaused();
11 _;
12 }
13
14 modifier onlyLendingPoolConfigurator() {
15 _onlyLendingPoolConfigurator();
16 _;
17 }
18
19 function _whenNotPaused() internal view {
20 require(!_paused, Errors.LP_IS_PAUSED);
21 }
22
23 function _onlyLendingPoolConfigurator() internal view {
24 require(
25 _addressesProvider.getLendingPoolConfigurator() == msg.sender,
26 Errors.LP_CALLER_NOT_LENDING_POOL_CONFIGURATOR
27 );
28 }
29
30 function getRevision() internal pure override returns (uint256) {
31 return LENDINGPOOL_REVISION;
32 }
33
34 /**
35 * @dev Function is invoked by the proxy contract when the LendingPool contract is added to the
36 * LendingPoolAddressesProvider of the market.
37 * - Caching the address of the LendingPoolAddressesProvider in order to reduce gas consumption
38 * on subsequent operations
39 * @param provider The address of the LendingPoolAddressesProvider
40 **/
41 function initialize(ILendingPoolAddressesProvider provider) public initializer {
42 _addressesProvider = provider;
43 _maxStableRateBorrowSizePercent = 2500;
44 _flashLoanPremiumTotal = 9;
45 _maxNumberOfReserves = 128;
46 }
47
48 /**
49 * @dev Deposits an `amount` of underlying asset into the reserve, receiving in return overlying aTokens.
50 * - E.g. User deposits 100 USDC and gets in return 100 aUSDC
51 * @param asset The address of the underlying asset to deposit
52 * @param amount The amount to be deposited
53 * @param onBehalfOf The address that will receive the aTokens, same as msg.sender if the user
54 * wants to receive them on his own wallet, or a different address if the beneficiary of aTokens
55 * is a different wallet
56 * @param referralCode Code used to register the integrator originating the operation, for potential rewards.
57 * 0 if the action is executed directly by the user, without any middle-man
58 **/
59 function deposit(
60 address asset,
61 uint256 amount,
62 address onBehalfOf,
63 uint16 referralCode
64 ) external override whenNotPaused {
65 DataTypes.ReserveData storage reserve = _reserves[asset];
66
67 ValidationLogic.validateDeposit(reserve, amount);
68
69 address aToken = reserve.aTokenAddress;
70
71 reserve.updateState();
72 reserve.updateInterestRates(asset, aToken, amount, 0);
73
74 IERC20(asset).safeTransferFrom(msg.sender, aToken, amount);
75
76 bool isFirstDeposit = IAToken(aToken).mint(onBehalfOf, amount, reserve.liquidityIndex);
77
78 if (isFirstDeposit) {
79 _usersConfig[onBehalfOf].setUsingAsCollateral(reserve.id, true);
80 emit ReserveUsedAsCollateralEnabled(asset, onBehalfOf);
81 }
82
83 emit Deposit(asset, msg.sender, onBehalfOf, amount, referralCode);
84 }
85
86 /**
87 * @dev Withdraws an `amount` of underlying asset from the reserve, burning the equivalent aTokens owned
88 * E.g. User has 100 aUSDC, calls withdraw() and receives 100 USDC, burning the 100 aUSDC
89 * @param asset The address of the underlying asset to withdraw
90 * @param amount The underlying amount to be withdrawn
91 * - Send the value type(uint256).max in order to withdraw the whole aToken balance
92 * @param to Address that will receive the underlying, same as msg.sender if the user
93 * wants to receive it on his own wallet, or a different address if the beneficiary is a
94 * different wallet
95 * @return The final amount withdrawn
96 **/
97 function withdraw(
98 address asset,
99 uint256 amount,
100 address to
101 ) external override whenNotPaused returns (uint256) {
102 DataTypes.ReserveData storage reserve = _reserves[asset];
103
104 address aToken = reserve.aTokenAddress;
105
106 uint256 userBalance = IAToken(aToken).balanceOf(msg.sender);
107
108 uint256 amountToWithdraw = amount;
109
110 if (amount == type(uint256).max) {
111 amountToWithdraw = userBalance;
112 }
113
114 ValidationLogic.validateWithdraw(
115 asset,
116 amountToWithdraw,
117 userBalance,
118 _reserves,
119 _usersConfig[msg.sender],
120 _reservesList,
121 _reservesCount,
122 _addressesProvider.getPriceOracle()
123 );
124
125 reserve.updateState();
126
127 reserve.updateInterestRates(asset, aToken, 0, amountToWithdraw);
128
129 if (amountToWithdraw == userBalance) {
130 _usersConfig[msg.sender].setUsingAsCollateral(reserve.id, false);
131 emit ReserveUsedAsCollateralDisabled(asset, msg.sender);
132 }
133
134 IAToken(aToken).burn(msg.sender, to, amountToWithdraw, reserve.liquidityIndex);
135
136 emit Withdraw(asset, msg.sender, to, amountToWithdraw);
137
138 return amountToWithdraw;
139 }
140
141 /*
142 * @dev Allows users to borrow a specific `amount` of the reserve underlying asset, provided that the borrower
143 * already deposited enough collateral, or he was given enough allowance by a credit delegator on the
144 * corresponding debt token (StableDebtToken or VariableDebtToken)
145 * - E.g. User borrows 100 USDC passing as `onBehalfOf` his own address, receiving the 100 USDC in his wallet
146 * and 100 stable/variable debt tokens, depending on the `interestRateMode`
147 * @param asset The address of the underlying asset to borrow
148 * @param amount The amount to be borrowed
149 * @param interestRateMode The interest rate mode at which the user wants to borrow: 1 for Stable, 2 for Variable
150 * @param referralCode Code used to register the integrator originating the operation, for potential rewards.
151 * 0 if the action is executed directly by the user, without any middle-man
152 * @param onBehalfOf Address of the user who will receive the debt. Should be the address of the borrower itself
153 * calling the function if he wants to borrow against his own collateral, or the address of the credit delegator
154 * if he has been given credit delegation allowance
155 */
156 function borrow(
157 address asset,
158 uint256 amount,
159 uint256 interestRateMode,
160 uint16 referralCode,
161 address onBehalfOf
162 ) external override whenNotPaused {
163 DataTypes.ReserveData storage reserve = _reserves[asset];
164
165 _executeBorrow(
166 ExecuteBorrowParams(
167 asset,
168 msg.sender,
169 onBehalfOf,
170 amount,
171 interestRateMode,
172 reserve.aTokenAddress,
173 referralCode,
174 true
Comments to Code: 1501 / 3618 = 41 %
Tests to Code: 12632 / 3618 = 349 %