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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 easily be found at https://compound.finance/docs#networks, as indicated in the Appendix.
2. How active is the primary contract? (%)
Contract Comptroller is used over 50 times a day, as indicated in the Appendix.
3. Does the protocol have a public software repository? (Y/N)
Compound's GitHub can be found here.
4. Is there a development history visible? (%)
With 76 commits and 32 commits, Compound has a GitHub repository that is heavily interfaced with.
5. Is the team public (not anonymous)?
Many public team contributors were identified in Compound Labs' LinkedIn page.
This section looks at the software documentation. The document explaining these questions is here.
6. Is there a whitepaper? (Y/N)
Location: https://compound.finance/docs
7. Is the protocol's software architecture documented? (Y/N)
Compound's software architecture is documented in https://compound.finance/docs/ctokens, https://compound.finance/docs/comptroller, and https://compound.finance/docs/governance#introduction.
8. Does the software documentation fully cover the deployed contracts' source code? (%)
Compound's software documentation fully covers its smart contract functions for all smart contracts in https://compound.finance/docs/ctokens, https://compound.finance/docs/comptroller, and https://compound.finance/docs/governance#introduction..
9. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
There is a clear association between Compound's code and its documentation, although there is no explicit traceability.
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 113% 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. Reviewer Note: In addition to the many test files available within Compound's main GitHub repo, we also came across multiple simulation, scenario, and general spec files. This proves to us that additional unit testing and test-in-strapi was conducted. We can therefore award Compound 100% instead of 80%, as these tests make up for the 7% missing from the TtC.
11. How covered is the protocol's code? (%)
According to their Codecov report, Compound only has 37% code coverage. However, they do have an impressive testing repository, and therefore they are awarded 50% for this metric according to our guidance found below.
12. Does the protocol provide scripts and instructions to run their tests? (Y/N)
Scripts/Instructions location: https://github.com/compound-finance/compound-protocol/tree/master/script
13. Is there a detailed report of the protocol's test results?(%)
Compound has very in-depth testing report within their external CircleCI page.
14. Has the protocol undergone Formal Verification? (Y/N)
Compound has undergone a Formal Verification test performed by Certora.
15. Were the smart contracts deployed to a testnet? (Y/N)
Compound has been deployed to multiple testnets.
This section looks at the 3rd party software audits done. It is explained in this document.
16. Is the protocol sufficiently audited? (%)
Compound has had consistent audits through their development as documented on their site. They have audits from two top level audit organizations. The audits are public and they have implemented findings in order to improve their code. In addition, numerous audits were released previous to their latest deployment.
17. Is the bounty value acceptably high (%)
Compound offers an active bug bounty of $50K. The protocol also offers an inactive bug bounty of up to $150k.
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?
Compound's Admin Control information is documented at this location. This was quick to find.
19. Are relevant contracts clearly labelled as upgradeable or immutable? (%)
Compound's core smart contracts, Comptroller and any cToken are explicitly identified as upgradeable through GovernorBravo and the COMP token. In addition, its governable nature effectively makes the protocol non-custodial, therefore making any functions or contracts that handle any user funds immutable. As such, 100% will be given for this question.
20. Is the type of smart contract ownership clearly indicated? (%)
Compound's community ownership through a rigorous governance module is clearly indicated in their documentation.
21. Are the protocol's smart contract change capabilities described? (%)
Compound's smart contract change capabilities are vaguely described as "system parameters, support new markets, or add entirely new functionality to the protocol". More in-depth information is required in order to give a score for this question.
22. Is the protocol's admin control information easy to understand? (%)
Compound makes it clear that the community owns the protocol, therefore clearly making it non-custodial. As such, 100% will be given for this question.
23. Is there sufficient Pause Control documentation? (%)
Compound's Pause Guardian is documented and adequately explained in their governance docs. There is no evidence of testing i.e. fire drill.
24. Is there sufficient Timelock documentation? (%)
Compound has adequate timelock documentation which can be found at this location.
25. Is the Timelock of an adequate length? (Y/N)
Compound's timelock is of a relevant length (minimum 48h), as specified in this location.
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. These questions are explained in this document.
26. Is the protocol's Oracle sufficiently documented? (%)
Compound's oracle source is documented at this location. The contracts dependent on price feeds are identified, and there is relevant software function documentation included.
27. Is front running mitigated by this protocol? (Y/N)
Compound mitigates front running through transaction fees, and a combination of Chainlink oracles and Uniswap's TWAP which would effectively require the front running of multiple price feeds. Although it is not explicitly stated in Compound's documentation, the protocol's architecture naturally makes front running difficult and expensive, which can disincentivize front runners with nefarious intentions.
28. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
Compound mitigates the possibilities of flash loan / liquidity manipulations via a combination of Chainlink oracles and Uniswap v2 TWAP sanity checks, therefore ensuring "truthful" price data.
1contract Comptroller is ComptrollerV7Storage, ComptrollerInterface, ComptrollerErrorReporter, ExponentialNoError {
2 /// @notice Emitted when an admin supports a market
3 event MarketListed(CToken cToken);
4
5 /// @notice Emitted when an account enters a market
6 event MarketEntered(CToken cToken, address account);
7
8 /// @notice Emitted when an account exits a market
9 event MarketExited(CToken cToken, address account);
10
11 /// @notice Emitted when close factor is changed by admin
12 event NewCloseFactor(uint oldCloseFactorMantissa, uint newCloseFactorMantissa);
13
14 /// @notice Emitted when a collateral factor is changed by admin
15 event NewCollateralFactor(CToken cToken, uint oldCollateralFactorMantissa, uint newCollateralFactorMantissa);
16
17 /// @notice Emitted when liquidation incentive is changed by admin
18 event NewLiquidationIncentive(uint oldLiquidationIncentiveMantissa, uint newLiquidationIncentiveMantissa);
19
20 /// @notice Emitted when price oracle is changed
21 event NewPriceOracle(PriceOracle oldPriceOracle, PriceOracle newPriceOracle);
22
23 /// @notice Emitted when pause guardian is changed
24 event NewPauseGuardian(address oldPauseGuardian, address newPauseGuardian);
25
26 /// @notice Emitted when an action is paused globally
27 event ActionPaused(string action, bool pauseState);
28
29 /// @notice Emitted when an action is paused on a market
30 event ActionPaused(CToken cToken, string action, bool pauseState);
31
32 /// @notice Emitted when a new borrow-side COMP speed is calculated for a market
33 event CompBorrowSpeedUpdated(CToken indexed cToken, uint newSpeed);
34
35 /// @notice Emitted when a new supply-side COMP speed is calculated for a market
36 event CompSupplySpeedUpdated(CToken indexed cToken, uint newSpeed);
37
38 /// @notice Emitted when a new COMP speed is set for a contributor
39 event ContributorCompSpeedUpdated(address indexed contributor, uint newSpeed);
40
41 /// @notice Emitted when COMP is distributed to a supplier
42 event DistributedSupplierComp(CToken indexed cToken, address indexed supplier, uint compDelta, uint compSupplyIndex);
43
44 /// @notice Emitted when COMP is distributed to a borrower
45 event DistributedBorrowerComp(CToken indexed cToken, address indexed borrower, uint compDelta, uint compBorrowIndex);
46
47 /// @notice Emitted when borrow cap for a cToken is changed
48 event NewBorrowCap(CToken indexed cToken, uint newBorrowCap);
49
50 /// @notice Emitted when borrow cap guardian is changed
51 event NewBorrowCapGuardian(address oldBorrowCapGuardian, address newBorrowCapGuardian);
52
53 /// @notice Emitted when COMP is granted by admin
54 event CompGranted(address recipient, uint amount);
55
56 /// @notice Emitted when COMP accrued for a user has been manually adjusted.
57 event CompAccruedAdjusted(address indexed user, uint oldCompAccrued, uint newCompAccrued);
58
59 /// @notice Emitted when COMP receivable for a user has been updated.
60 event CompReceivableUpdated(address indexed user, uint oldCompReceivable, uint newCompReceivable);
61
62 /// @notice The initial COMP index for a market
63 uint224 public constant compInitialIndex = 1e36;
64
65 // closeFactorMantissa must be strictly greater than this value
66 uint internal constant closeFactorMinMantissa = 0.05e18; // 0.05
67
68 // closeFactorMantissa must not exceed this value
69 uint internal constant closeFactorMaxMantissa = 0.9e18; // 0.9
70
71 // No collateralFactorMantissa may exceed this value
72 uint internal constant collateralFactorMaxMantissa = 0.9e18; // 0.9
73
74 constructor() public {
75 admin = msg.sender;
76 }
77
78 /*** Assets You Are In ***/
79
80 /**
81 * @notice Returns the assets an account has entered
82 * @param account The address of the account to pull assets for
83 * @return A dynamic list with the assets the account has entered
84 */
85 function getAssetsIn(address account) external view returns (CToken[] memory) {
86 CToken[] memory assetsIn = accountAssets[account];
87
88 return assetsIn;
89 }
90
91 /**
92 * @notice Returns whether the given account is entered in the given asset
93 * @param account The address of the account to check
94 * @param cToken The cToken to check
95 * @return True if the account is in the asset, otherwise false.
96 */
97 function checkMembership(address account, CToken cToken) external view returns (bool) {
98 return markets[address(cToken)].accountMembership[account];
99 }
100
101 /**
102 * @notice Add assets to be included in account liquidity calculation
103 * @param cTokens The list of addresses of the cToken markets to be enabled
104 * @return Success indicator for whether each corresponding market was entered
105 */
106 function enterMarkets(address[] memory cTokens) public returns (uint[] memory) {
107 uint len = cTokens.length;
108
109 uint[] memory results = new uint[](len);
110 for (uint i = 0; i < len; i++) {
111 CToken cToken = CToken(cTokens[i]);
112
113 results[i] = uint(addToMarketInternal(cToken, msg.sender));
114 }
115
116 return results;
117 }
Tests to Code: 10518 / 9278 = 113 %