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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 relevant chain that gets reviewed and its corresponding software repository. The document explaining these questions is here.
1. Are the smart contract addresses easy to find? (%)
They can be found at https://v4.docs.pooltogether.com/protocol/deployments/mainnet/, as indicated in the Appendix.
2. How active is the primary contract? (%)
Contract PrizeDistributor is used 100+ times a day, as indicated in the Appendix.
3. Does the protocol have a public software repository? (Y/N)
PoolTogether uses GitHub
4. Is there a development history visible? (%)
At 580 commits, PoolTogether's commitment to development history is clearly not left to chance.
5. Is the team public (not anonymous)?
The protocol is decentralized, though key contributors are public and confirm their roles. See our appendix at the end of this review for reference.
The difference between this and the old link is solely the link. This section looks at the software documentation. The document explaining these questions is here.
6. Is there a whitepaper? (Y/N)
Location: https://v4.docs.pooltogether.com/protocol/introduction
7. Is the protocol's software architecture documented? (Y/N)
This protocol's software architecture is documented in full.
8. Does the software documentation fully cover the deployed contracts' source code? (%)
There is complete coverage of deployed contracts by software function documentation.
9. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
There is explicit traceability between software documentation and implemented code. Users can click to see source code from the Smart Contract section.
10. Has the protocol tested their deployed code? (%)
Code examples are in the Appendix at the end of this report.. As per the SLOC, there is 276% testing to code (TtC). This score is guided by the Test to Code ratio (TtC). Generally a good test to code ratio is over 100%. However, the reviewer's best judgement is the final deciding factor.
11. How covered is the protocol's code? (%)
The protocol has 97% coverage.
12. Does the protocol provide scripts and instructions to run their tests? (Y/N)
Scripts/Instructions location: https://github.com/pooltogether/v4-core#testing
13. Is there a detailed report of the protocol's test results?(%)
A code coverage report is detailed.
14. Has the protocol undergone Formal Verification? (Y/N)
This protocol has not undergone formal verification.
15. Were the smart contracts deployed to a testnet? (Y/N)
This protocol has been deployed to a testnet.
This section looks at the 3rd party software audits done. It is explained in this document.
16. Is the protocol sufficiently audited? (%)
This protocol's V4 was audited once before release. In addition, the PoolTogether v4 release implements many elements of the v3 Prize Pool's core software architecture which has been audited multiple times. This can be seen at https://v3.docs.pooltogether.com/security/audits-and-testing.
17. Is the bounty value acceptably high (%)
This protocol offers an active bug bounty of $25K. In addition, Pooltogether v4's code was subject to a $100,000 Code Arena contest. Although this is no longer active, we will still award points for this, as the code was rigorously parsed through by white hats and security enthusiasts.
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.
18. Is the protocol's admin control information easy to find?
Admin control information was documented at this location. This took some looking. Although this is technically v3 documentation, the information is still valid for the v4 release. Additional v4 launch architecture details can be found at https://dev.pooltogether.com/protocol/architecture/launch-architecture/#defender-bug-or-attack, and further details the non-custodial aspects.
19. Are relevant contracts clearly labelled as upgradeable or immutable? (%)
Contracts are not upgradeable as specified by the v3 documentation. The v4 documentation corroborates this by highlighting the non-custodial nature of the deployment. In addition, the team plans to further decentralize the protocol through automation that will further remove the admins' implication from daily operations. This is detailed here, and we will update the review accordingly once the automation is in full effect.
20. Is the type of smart contract ownership clearly indicated? (%)
All contracts are not upgradeable. In addition, a MultiSig wallet operates the protocol's OpenZeppelin Defender implementation that is used to automatize transactions.
21. Are the protocol's smart contract change capabilities described? (%)
All contracts are not upgradeable. The only aspect of the protocol that the admins can change are the Prize Distribution details. However, this is only done if there are any discrepancies or mismatches in the aforementioned details.
22. Is the protocol's admin control information easy to understand? (%)
This information is not in software specific language, and is easy to understand from an investment safety perspective.
23. Is there sufficient Pause Control documentation? (%)
Contracts are not upgradeable, therefore disabling any pause capabilities.
24. Is there sufficient Timelock documentation? (%)
This protocol has some timelock documentation which can be found at this location. Additional timelock documentation detailing its duration and affected contracts can be found here.
25. Is the Timelock of an adequate length? (Y/N)
The timelock has a length of 24h, as specified here.
This section goes over the documentation that a protocol may or may not supply about their Oracle usage. Oracles are a fundamental part of DeFi as they are responsible for relaying tons of price data information to thousands of protocols using blockchain technology. Not only are they important for price feeds, but they are also an essential component of transaction verification and security. This is explained in this document.
26. Is the protocol's Oracle sufficiently documented? (%)
The protocol's Chainlink Oracle usage is documented, but it is not clear what role it plays. However, PoolTogether does clearly document its TWAB use and necessary specifications.
27. Is front running mitigated by this protocol? (Y/N)
This protocol documents front running mitigation techniques at this location.
28. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
PoolTogether's TWAB and 2-week epochs serve as adequate flash loan manipulation mitigation procedures.
1
2import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
3import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
4import "@openzeppelin/contracts/utils/Address.sol";
5import "@pooltogether/yield-source-interface/contracts/IYieldSource.sol";
6
7import "./PrizePool.sol";
8
9/**
10 * @title PoolTogether V4 YieldSourcePrizePool
11 * @author PoolTogether Inc Team
12 * @notice The Yield Source Prize Pool uses a yield source contract to generate prizes.
13 * Funds that are deposited into the prize pool are then deposited into a yield source. (i.e. Aave, Compound, etc...)
14 */
15contract YieldSourcePrizePool is PrizePool {
16 using SafeERC20 for IERC20;
17 using Address for address;
18
19 /// @notice Address of the yield source.
20 IYieldSource public immutable yieldSource;
21
22 /// @dev Emitted when yield source prize pool is deployed.
23 /// @param yieldSource Address of the yield source.
24 event Deployed(address indexed yieldSource);
25
26 /// @notice Emitted when stray deposit token balance in this contract is swept
27 /// @param amount The amount that was swept
28 event Swept(uint256 amount);
29
30 /// @notice Deploy the Prize Pool and Yield Service with the required contract connections
31 /// @param _owner Address of the Yield Source Prize Pool owner
32 /// @param _yieldSource Address of the yield source
33 constructor(address _owner, IYieldSource _yieldSource) PrizePool(_owner) {
34 require(
35 address(_yieldSource) != address(0),
36 "YieldSourcePrizePool/yield-source-not-zero-address"
37 );
38
39 yieldSource = _yieldSource;
40
41 // A hack to determine whether it's an actual yield source
42 (bool succeeded, bytes memory data) = address(_yieldSource).staticcall(
43 abi.encodePacked(_yieldSource.depositToken.selector)
44 );
45 address resultingAddress;
46 if (data.length > 0) {
47 resultingAddress = abi.decode(data, (address));
48 }
49 require(succeeded && resultingAddress != address(0), "YieldSourcePrizePool/invalid-yield-source");
50
51 emit Deployed(address(_yieldSource));
52 }
53
54 /// @notice Sweeps any stray balance of deposit tokens into the yield source.
55 /// @dev This becomes prize money
56 function sweep() external nonReentrant onlyOwner {
57 uint256 balance = _token().balanceOf(address(this));
58 _supply(balance);
59
60 emit Swept(balance);
61 }
62
63 /// @notice Determines whether the passed token can be transferred out as an external award.
64 /// @dev Different yield sources will hold the deposits as another kind of token: such a Compound's cToken. The
65 /// prize strategy should not be allowed to move those tokens.
66 /// @param _externalToken The address of the token to check
67 /// @return True if the token may be awarded, false otherwise
68 function _canAwardExternal(address _externalToken) internal view override returns (bool) {
69 IYieldSource _yieldSource = yieldSource;
70 return (
71 _externalToken != address(_yieldSource) &&
72 _externalToken != _yieldSource.depositToken()
73 );
74 }
75
76 /// @notice Returns the total balance (in asset tokens). This includes the deposits and interest.
77 /// @return The underlying balance of asset tokens
78 function _balance() internal override returns (uint256) {
79 return yieldSource.balanceOfToken(address(this));
80 }
81
82 /// @notice Returns the address of the ERC20 asset token used for deposits.
83 /// @return Address of the ERC20 asset token.
84 function _token() internal view override returns (IERC20) {
85 return IERC20(yieldSource.depositToken());
86 }
87
88 /// @notice Supplies asset tokens to the yield source.
89 /// @param _mintAmount The amount of asset tokens to be supplied
90 function _supply(uint256 _mintAmount) internal override {
91 _token().safeIncreaseAllowance(address(yieldSource), _mintAmount);
92 yieldSource.supplyTokenTo(_mintAmount, address(this));
93 }
94
95 /// @notice Redeems asset tokens from the yield source.
96 /// @param _redeemAmount The amount of yield-bearing tokens to be redeemed
97 /// @return The actual amount of tokens that were redeemed.
98 function _redeem(uint256 _redeemAmount) internal override returns (uint256) {
99 return yieldSource.redeemToken(_redeemAmount);
100 }
101}