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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://github.com/dydxprotocol/solo/blob/master/migrations/deployed.json, as indicated in the Appendix.
2. Is the code actively being used? (%)
Activity is well over 10 transactions a day on contract SoloMargin.sol, as indicated in the Appendix.
3. Is there a public software repository? (Y/N)
GitHub: https://github.com/dydxprotocol/solo.
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 500 commits and 2 branches, 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)
Location: https://www.linkedin.com/company/dydx.
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.
6. Is there a whitepaper? (Y/N)
7. Are the basic software functions documented? (Y/N)
All of the basic software functions are documented at https://docs.dydx.exchange/#general (Layer 2) and https://legacy-docs.dydx.exchange/#introduction (Layer 1).
8. Does the software function documentation fully (100%) cover the deployed contracts? (%)
All contracts and functions are documented in the dYdX documentation. They rigorously document their API, Solo Protocol, and Perpetual Protocol in their Layer 1 documentation, and also detailed API and Perpetual Contract information in their Layer 2 documentation.
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 all throughout the dYdX documentation due to the fact that they give side-by-side examples on how the described code is implemented into code. Examples of this can be seen all throughout the layer 2 and layer 1 documentation.
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) (%)
The dYdX solo, perpetual, and protocol repositories all have 100% code coverage from codecov. These are the core and updated contracts.
13. Scripts and instructions to run the tests? (Y/N)
Scrips/Instructions location: https://github.com/dydxprotocol/solo/tree/master/scripts, instructions can be found at https://github.com/dydxprotocol/solo/blob/master/README.md.
14. Report of the results (%)
The dYdX coveralls code coverage reports can be found at https://coveralls.io/github/dydxprotocol.
15. Formal Verification test done (%)
There is no evidence of a dYdX Formal Verification test in any of their documentation or in further web research.
16. Stress Testing environment (%)
All of the dYdX "42" contract addresses in the deployed.json are Kovan testnet addresses that are still regularly being used.
This section looks at the 3rd party software audits done. It is explained in this document.
17. Did 3rd Party audits take place? (%)
18. Is the bug bounty acceptable high? (%)
The dYdX Bug Bounty program offers up to 50k for the most critical of bug finds.
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 (%)
There is a clearly-labelled "Governance" section on the dYdX website. Once there, you have buttons that either take you to the forums or the documentation.
20. Is the information clear and complete (%)
21. Is the information in non-technical terms that pertain to the investments (%)
All governance and access control information relates to investment safety and is described in user-friendly language. In addition, there is also a "Technical Overview" section for developers.
22. Is there Pause Control documentation including records of tests (%)
dYdX mention a similar function to Pause Control with their Merkle-pauser executor: "The Merkle-pauser executor can execute proposals that freeze the Merkle root, which is updated periodically with each user's cumulative reward balance, allowing new rewards to be distributed to users over time, in case the proposed root is incorrect or malicious." This can be found here
1/**
2 * @title Admin
3 * @author dYdX
4 *
5 * Public functions that allow the privileged owner address to manage Solo
6 */
7contract Admin is
8 State,
9 Ownable,
10 ReentrancyGuard
11{
12 // ============ Token Functions ============
13
14 /**
15 * Withdraw an ERC20 token for which there is an associated market. Only excess tokens can be
16 * withdrawn. The number of excess tokens is calculated by taking the current number of tokens
17 * held in Solo, adding the number of tokens owed to Solo by borrowers, and subtracting the
18 * number of tokens owed to suppliers by Solo.
19 */
20 function ownerWithdrawExcessTokens(
21 uint256 marketId,
22 address recipient
23 )
24 public
25 onlyOwner
26 nonReentrant
27 returns (uint256)
28 {
29 return AdminImpl.ownerWithdrawExcessTokens(
30 g_state,
31 marketId,
32 recipient
33 );
34 }
35
36 /**
37 * Withdraw an ERC20 token for which there is no associated market.
38 */
39 function ownerWithdrawUnsupportedTokens(
40 address token,
41 address recipient
42 )
43 public
44 onlyOwner
45 nonReentrant
46 returns (uint256)
47 {
48 return AdminImpl.ownerWithdrawUnsupportedTokens(
49 g_state,
50 token,
51 recipient
52 );
53 }
54
55 // ============ Market Functions ============
56
57 /**
58 * Add a new market to Solo. Must be for a previously-unsupported ERC20 token.
59 */
60 function ownerAddMarket(
61 address token,
62 IPriceOracle priceOracle,
63 IInterestSetter interestSetter,
64 Decimal.D256 memory marginPremium,
65 Decimal.D256 memory spreadPremium
66 )
67 public
68 onlyOwner
69 nonReentrant
70 {
71 AdminImpl.ownerAddMarket(
72 g_state,
73 token,
74 priceOracle,
75 interestSetter,
76 marginPremium,
77 spreadPremium
78 );
79 }
80
81 /**
82 * Set (or unset) the status of a market to "closing". The borrowedValue of a market cannot
83 * increase while its status is "closing".
84 */
85 function ownerSetIsClosing(
86 uint256 marketId,
87 bool isClosing
88 )
89 public
90 onlyOwner
91 nonReentrant
92 {
93 AdminImpl.ownerSetIsClosing(
94 g_state,
95 marketId,
96 isClosing
97 );
98 }
99
100 /**
101 * Set the price oracle for a market.
102 */
103 function ownerSetPriceOracle(
104 uint256 marketId,
105 IPriceOracle priceOracle
106 )
107 public
108 onlyOwner
109 nonReentrant
110 {
111 AdminImpl.ownerSetPriceOracle(
112 g_state,
113 marketId,
114 priceOracle
115 );
116 }
117
118 /**
119 * Set the interest-setter for a market.
120 */
121 function ownerSetInterestSetter(
122 uint256 marketId,
123 IInterestSetter interestSetter
124 )
125 public
126 onlyOwner
127 nonReentrant
128 {
129 AdminImpl.ownerSetInterestSetter(
130 g_state,
131 marketId,
132 interestSetter
133 );
134 }
135
136 /*
137 * Set a premium on the minimum margin-ratio for a market. This makes it so that any positions
138 * that include this market require a higher collateralization to avoid being liquidated.
139 */
140 function ownerSetMarginPremium(
141 uint256 marketId,
142 Decimal.D256 memory marginPremium
143 )
144 public
145 onlyOwner
146 nonReentrant
147 {
148 AdminImpl.ownerSetMarginPremium(
149 g_state,
150 marketId,
151 marginPremium
152 );
153 }
154
155 /*
156 * Set a premium on the liquidation spread for a market. This makes it so that any liquidations
157 * that include this market have a higher spread than the global default.
158 */
159 function ownerSetSpreadPremium(
160 uint256 marketId,
161 Decimal.D256 memory spreadPremium
162 )
163 public
164 onlyOwner
165 nonReentrant
166 {
167 AdminImpl.ownerSetSpreadPremium(
168 g_state,
169 marketId,
170 spreadPremium
171 );
172 }
Comments to Code: 1415 / 2633 = 54 %
Tests to Code: 8723 / 2633 = 331 %