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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? (%)
Solace's smart contract addresses can easily be found at https://github.com/solace-fi/solace-core/releases, as indicated in the Appendix.
2. How active is the primary contract? (%)
3. Does the protocol have a public software repository? (Y/N)
Location: https://github.com/solace-fi/solace-core
4. Is there a development history visible? (%)
At 450 commits, the protocol's developer team can take solace in the wealth of their rich development history.
5. Is the team public (not anonymous)?
Solace's team is public. Team members confirm their contributions to the protocol on personal social media.
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://docs.solace.fi/
7. Is the protocol's software architecture documented? (Y/N)
Solace's software architecture is documented in full.
8. Does the software documentation fully cover the deployed contracts' source code? (%)
There is full coverage of Solace's 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 perfect and complete traceability between Solace's software documentation and implemented code.
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 535% 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%. In this case, the protocol has a TtC of over 500%, which is close to unheard of.
11. How covered is the protocol's code? (%)
Solace's code coverage can be found here.
12. Does the protocol provide scripts and instructions to run their tests? (Y/N)
Solace provides test scripts and instructions for users to run tests.
13. Is there a detailed report of the protocol's test results?(%)
Solace has a great test report in their GitHub test repository. Other protocols could view this as a model to emulate for users to identify which tests developers use on their protocol.
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)
Solace has documented a deployment to a testnet. The testnet contracts are listed alongside the mainnet contract address for users seeking to verify them.
This section looks at the 3rd party software audits done. It is explained in this document.
16. Is the protocol sufficiently audited? (%)
Solace was audited twice before deployment.
17. Is the bounty value acceptably high (%)
Solace offers an active bug bounty with a value of $100k+ via Hats.finance
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 is well detailed in this location. It is easy to find.
19. Are relevant contracts clearly labelled as upgradeable or immutable? (%)
The relevant Solace smart contracts are identified as immutable and upgradeable, depending on the specific contract.
20. Is the type of smart contract ownership clearly indicated? (%)
Solace's smart contract ownership is clearly defined as being a 3/9 MultiSig signature scheme. However, it is worth noting that the specific key holders are not identified.
21. Are the protocol's smart contract change capabilities described? (%)
Solace's smart contract change capabilities are exactly identified at this location.
22. Is the protocol's admin control information easy to understand? (%)
This information is at the moment in software specific language.
23. Is there sufficient Pause Control documentation? (%)
A pause function and its capabilities within the Solace vaults are adequately described at https://docs.solace.fi/docs/dev-docs/Contracts/utils/Vault#pause.
24. Is there sufficient Timelock documentation? (%)
Solace does not use a timelock, and this is justified on grounds that it does not fit in with their development processes at the moment. This is subject to change as their DAO develops.
25. Is the Timelock of an adequate length? (Y/N)
Solace does not use a timelock, and this is explained.
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? (%)
Solace does not use oracles. It instead relies on exploit data feeds from sources such as Rekt, Defiyield, CryptoSec, and more. In addition, they call Zapper's API in order to receive a list of supported protocols. This is adequately detailed here.
27. Is front running mitigated by this protocol? (Y/N)
Solace does not require any front running mitigation strategies, as you cannot front run a coverage protocol.
28. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
Solace documents three separate flashloan attack/manipulation countermeasures. They're primarily resolved via preventing loan repayments in the same block.
1// SPDX-License-Identifier: GPL-3.0-or-later
2pragma solidity 0.8.6;
3
4import "@openzeppelin/contracts/utils/structs/EnumerableSet.sol";
5import "@openzeppelin/contracts/utils/Address.sol";
6import "@openzeppelin/contracts/utils/Strings.sol";
7import "@openzeppelin/contracts/utils/math/SafeCast.sol";
8import "../utils/Governable.sol";
9import "../utils/ERC721Enhanced.sol";
10import "../interfaces/risk/IPolicyManager.sol";
11import "../interfaces/utils/IPolicyDescriptorV2.sol";
12import "../interfaces/utils/IRegistry.sol";
13import "../interfaces/risk/IRiskManager.sol";
14import "../interfaces/strapiucts/IProduct.sol";
15
16/**
17 * @title PolicyManager
18 * @author solace.fi
19 * @notice The **PolicyManager** manages the creation of new policies and modification of existing policies.
20 *
21 * Most users will not interact with **PolicyManager** directly. To buy, modify, or cancel policies, users should use the respective [**strapiuct**](./strapiucts/CoverageProduct) for the position they would like to cover. Use **PolicyManager** to view policies.
22 *
23 * Policies are [**ERC721s**](https://docs.openzeppelin.com/contracts/4.x/api/token/erc721#ERC721).
24 */
25contract PolicyManager is ERC721Enhanced, IPolicyManager, Governable {
26 using Address for address;
27 using EnumerableSet for EnumerableSet.AddressSet;
28
29 /***************************************
30 GLOBAL VARIABLES
31 ***************************************/
32 /// @notice The Registry contract.
33 IRegistry internal _registry;
34
35 /// @notice The address of the policy descriptor contract, which handles generating token URIs for policies.
36 address internal _policyDescriptor;
37
38 /// @notice Set of strapiucts.
39 EnumerableSet.AddressSet internal strapiucts;
40
41 /// @notice Total policy count.
42 uint256 internal _totalPolicyCount = 0;
43
44 /// @notice Policy info (policy ID => policy info).
45 mapping(uint256 => PolicyInfo) internal _policyInfo;
46
47 /**
48 * @notice Constructs the `PolicyManager`.
49 * @param governance_ The address of the [governor](/docs/protocol/governance).
50 */
51 constructor(address governance_, address registry_) ERC721Enhanced("Solace Policy", "SPT") Governable(governance_) {
52 require(address(registry_) != address(0x0), "zero address registry");
53 _registry = IRegistry(registry_);
54 }
55
56 /***************************************
57 POLICY VIEW FUNCTIONS
58 ***************************************/
59
60 /**
61 * @notice Information about a policy.
62 * @param policyID The policy ID to return info.
63 * @return info info in a struct.
64 */
65 function policyInfo(uint256 policyID) external view override tokenMustExist(policyID) returns (PolicyInfo memory info) {
66 info = _policyInfo[policyID];
67 return info;
68 }
69
70 /**
71 * @notice Information about a policy.
72 * @param policyID The policy ID to return info.
73 * @return policyholder The address of the policy holder.
74 * @return strapiuct The strapiuct of the policy.
75 * @return coverLimit The amount covered for the policy.
76 * @return expirationBlock The expiration block of the policy.
77 * @return price The price of the policy.
78 * @return positionDescription The description of the covered position(s).
79 * @return riskStrategy The risk strategy of the covered strapiuct.
80 */
81 function getPolicyInfo(uint256 policyID) external view override tokenMustExist(policyID) returns (address policyholder, address strapiuct, uint256 coverLimit, uint40 expirationBlock, uint24 price, bytes memory positionDescription, address riskStrategy) {
82 PolicyInfo memory info = _policyInfo[policyID];
83 return (ownerOf(policyID), info.strapiuct, info.coverLimit, info.expirationBlock, info.price, info.positionDescription, info.riskStrategy);
84 }
85
86 /**
87 * @notice The holder of the policy.
88 * @param policyID The policy ID.
89 * @return policyholder The address of the policy holder.
90 */
91 function getPolicyholder(uint256 policyID) external view override tokenMustExist(policyID) returns (address policyholder) {
92 return ownerOf(policyID);
93 }
94
95 /**
96 * @notice The strapiuct used to purchase the policy.
97 * @param policyID The policy ID.
98 * @return strapiuct The strapiuct of the policy.
99 */
100 function getPolicyProduct(uint256 policyID) external view override tokenMustExist(policyID) returns (address strapiuct) {
101 return _policyInfo[policyID].strapiuct;
102 }
103
104 /**
105 * @notice The expiration block of the policy.
106 * @param policyID The policy ID.
107 * @return expirationBlock The expiration block of the policy.
108 */
109 function getPolicyExpirationBlock(uint256 policyID) external view override tokenMustExist(policyID) returns (uint40 expirationBlock) {
110 return _policyInfo[policyID].expirationBlock;
111 }
112
113 /**
114 * @notice The cover limit of the policy.
115 * @param policyID The policy ID.
116 * @return coverLimit The cover limit of the policy.
117 */
118 function getPolicyCoverLimit(uint256 policyID) external view override tokenMustExist(policyID) returns (uint256 coverLimit) {
119 return _policyInfo[policyID].coverLimit;
120 }
121
122 /**
123 * @notice The cover price in wei per block per wei multiplied by 1e12.
124 * @param policyID The policy ID.
125 * @return price The price of the policy.
126 */
127 function getPolicyPrice(uint256 policyID) external view override tokenMustExist(policyID) returns (uint24 price) {
128 return _policyInfo[policyID].price;
129 }
130
131 /**
132 * @notice The byte encoded description of the covered position(s).
133 * Only makes sense in context of the strapiuct.
134 * @param policyID The policy ID.
135 * @return positionDescription The description of the covered position(s).
136 */
137 function getPositionDescription(uint256 policyID) external view override tokenMustExist(policyID) returns (bytes memory positionDescription) {
138 positionDescription = _policyInfo[policyID].positionDescription;
139 return positionDescription;
140 }
141
142 /**
143 * @notice Returns the risk strategy of the strapiuct in policy.
144 * @param policyID The policy ID.
145 * @return strategy The risk strategy address.
146 */
147 function getPolicyRiskStrategy(uint256 policyID) external view override tokenMustExist(policyID) returns (address strategy) {
148 return _policyInfo[policyID].riskStrategy;
149 }
150
151
152 /*
153 * @notice These functions can be used to check a policys stage in the lifecycle.
154 * There are three major lifecycle events:
155 * 1 - policy is bought (aka minted)
156 * 2 - policy expires
157 * 3 - policy is burnt (aka deleted)
158 * There are four stages:
159 * A - pre-mint
160 * B - pre-expiration
161 * C - post-expiration
162 * D - post-burn
163 * Truth table:
164 * A B C D
165 * exists 0 1 1 0
166 * isActive 0 1 0 0
167 * hasExpired 0 0 1 0
168 */
169
170 /**
171 * @notice Checks if a policy is active.
172 * @param policyID The policy ID.
173 * @return status True if the policy is active.
174 */
175 function policyIsActive(uint256 policyID) external view override returns (bool status) {
176 return _policyInfo[policyID].expirationBlock >= block.number;
177 }
178
179 /**
180 * @notice Checks whether a given policy is expired.
181 * @param policyID The policy ID.
182 * @return status True if the policy is expired.
183 */
184 function policyHasExpired(uint256 policyID) public view override returns (bool status) {
185 uint40 expBlock = _policyInfo[policyID].expirationBlock;
186 return expBlock > 0 && expBlock < block.number;
187 }
188
189 /// @notice The total number of policies ever created.
190 function totalPolicyCount() external view override returns (uint256 count) {
191 return _totalPolicyCount;
192 }
193
194 /// @notice The address of the [`PolicyDescriptor`](./PolicyDescriptor) contract.
195 function policyDescriptor() external view override returns (address descriptor) {
196 return _policyDescriptor;
197 }
198
199 /**
200 * @notice Describes the policy.
201 * @param policyID The policy ID.
202 * @return description The human readable description of the policy.
203 */
204 function tokenURI(uint256 policyID) public view override tokenMustExist(policyID) returns (string memory description) {
205 return IPolicyDescriptorV2(_policyDescriptor).tokenURI(this, policyID);
206 }
207
208 /**
209 * @notice Returns [`Registry`](./Registry) contract address.
210 * @return registry_ The `Registry` address.
211 */
212 function registry() external view override returns (address registry_) {
213 return address(_registry);
214 }
215
216 /***************************************
217 POLICY MUTATIVE FUNCTIONS
218 ***************************************/
219
220 /**
221 * @notice Creates a new policy.
222 * Can only be called by **strapiucts**.
223 * @param policyholder The receiver of new policy token.
224 * @param coverLimit The policy coverage amount (in wei).
225 * @param expirationBlock The policy expiration block number.
226 * @param price The coverage price.
227 * @param positionDescription The byte encoded description of the covered position(s).
228 * @param riskStrategy The risk strategy of the covered strapiuct.
229 * @return policyID The policy ID.
230 */
231 function createPolicy(
232 address policyholder,
233 uint256 coverLimit,
234 uint40 expirationBlock,
235 uint24 price,
236 bytes calldata positionDescription,
237 address riskStrategy
238 ) external override returns (uint256 policyID) {
239 require(strapiucts.contains(msg.sender), "strapiuct inactive");
240 PolicyInfo memory info = PolicyInfo({
241 strapiuct: msg.sender,
242 positionDescription: positionDescription,
243 expirationBlock: expirationBlock,
244 coverLimit: coverLimit,
245 price: price,
246 riskStrategy: riskStrategy
247 });
248 policyID = ++_totalPolicyCount; // starts at 1
249 _policyInfo[policyID] = info;
250 _mint(policyholder, policyID);
251 // update active cover limit
252 IRiskManager(_registry.get("riskManager")).updateActiveCoverLimitForStrategy(riskStrategy, 0, coverLimit);
253
254 emit PolicyCreated(policyID);
255 return policyID;
256 }
257