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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.
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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? (%)
Smart contracts can be found here/. A screenshot of the contracts can be found in the appendix.
2. How active is the primary contract? (%)
ControllerProxy is used over 10 times in a week, but not more than 10 times a day. For that matter, the protocol will receive 70%. A screenshot of the transactions history can be found in the appendix.
3. Does the protocol have a public software repository? (Y/N)
Paladin's software repository can be found here.
4. Is there a development history visible? (%)
The Paladin-Protocol repository has 109 commits and 12 branches, which earns the protocol 100%
5. Is the team public (not anonymous)?
The core team is public on LinkedIn, with more than 2 members with doxxed identities. You can consult the page here. A screenshot of where we found the team can be found in the appendix.
This section looks at the software documentation. The document explaining these questions is here.
7. Is the protocol's software architecture documented? (Y/N)
This protocol's software architecture could not be found.
8. Does the software documentation fully cover the deployed contracts' source code? (%)
9. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
There is implicit traceability between software documentation and implemented code as the documentation can be cross-referenced to the Github folders. However, the GitHub's "contracts" folder provides a description of contracts as well as a hyperlink to the contracts. This is considered 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 213% 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? (%)
Paladin's code coverage is found here, with a score of 87%.
12. Does the protocol provide scripts and instructions to run their tests? (Y/N)
Scripts/Instructions location: https://github.com/PaladinFinance/Paladin-Protocol#tests
13. Is there a detailed report of the protocol's test results?(%)
A detailed test report can be found in the "Actions" tab of the protocol's CI. The report can be accessed here.
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)
Paladin was deployed on Kovan, and the testnet addresses can be found here
This section looks at the 3rd party software audits done. It is explained in this document.
16. Is the protocol sufficiently audited? (%)
Paladin has been audited once by Pessimistic pre-launch, you can find the audit here. Within the audit, 2 medium severity issues as well as 4 low severity issues were mentioned, and the changes were merged from the following push request. For that matter, Paladin will earn 90%.
17. Is the bounty value acceptably high (%)
This protocol offers an active bug bounty of $60K.
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 labelled as such here. This information is easy to find.
19. Are relevant contracts clearly labelled as upgradeable or immutable? (%)
The Admin page clarifies that parameters are upgradeable. Additionally, the Controller page displays: "The Controller is composed of 2 smart contracts, working in a Proxy & Implementation system. The Implementation can be changed to upgrade the Controller, and add more functions to it." Therefore, we assume contracts are upgradeable.
20. Is the type of smart contract ownership clearly indicated? (%)
Ownership is clearly indicated in the Admin page as the Core Multisig.
21. Are the protocol's smart contract change capabilities described? (%)
Admin controls are covered for some but not all smart contracts, earning the protocol 50%.
22. Is the protocol's admin control information easy to understand? (%)
This information is not in software specific language.
23. Is there sufficient Pause Control documentation? (%)
This protocol's pause control is could not be found.
24. Is there sufficient Timelock documentation? (%)
This protocol has no timelock documentation.
25. Is the Timelock of an adequate length? (Y/N)
This protocol has no timelock documentation.
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? (%)
Paladin uses Chainlink Data Feeds for ETH and USD prices as well as additional context regarding smart contracts, but not a specific timeframe.
27. Is front running mitigated by this protocol? (Y/N)
Paladin does not cover any frontrunning mitigation techniques.
28. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
Paladin highlights that the protocol "will never allow flash loans that have been known to damage other protocols" in their mainnet launch Medium article
1Enter appendix example code here
Tests to Code: 6437 / 3019 = 213 %