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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 review 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 chains and team aspects. The document explaining these questions is here.
1. Are the smart contract addresses easy to find? (%)
The smart contract addresses for Inverse Finance are clearly listed on the Smart Contracts page. They are well-organized and include various contracts such as Governance, Tokens, FiRM, Collateral Tokens, and more. Location: https://docs.inverse.finance/inverse-finance/technical/smart-contracts
2. Does the protocol have a public software repository? (Y/N)
Location: https://github.com/InverseFinance/FiRM
3. Is the team public (not anonymous)?
The introduction page of Inverse Finance provides information about the organization and its governance structure. It mentions the founder, Nour Haridy, and refers to the collective governance by Inverse Finance DAO. The Introduction page also includes details about core contributors and working groups. 2 names are available on the GitHub.
4. How responsive are the devs when we present our initial report?
Devs responded within 24hours
This section looks at the software documentation. The document explaining these questions is here.
5. Is there a whitepaper? (Y/N)
There is a whitepaper link on the Inverse Finance home page footer.
6. Is the protocol's software architecture documented? (%)
Basic architecture document: https://github.com/InverseFinance/FiRM
7. Does the software documentation fully cover the deployed contracts' source code? (%)
Major functions have inline NAtSpec commenting.
8. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
The documentation is all in commenting that is with the code. But this is not traceability and there are no requirements.
9. Is the documentation organized to ensure information availability and clarity? (%)
There is little organized documentation, just a system doc in the readme and comments in the code with nothing connecting them.
10. Has the protocol tested their deployed code? (%)
Test to Code is 163%, so 100% TtC = 2732 / 1667 = 163% ─────────────────────────────────────────────────────────────────────────────── Language Files Lines Blanks Comments Code Complexity ─────────────────────────────────────────────────────────────────────────────── JavaScript 8 1667 147 555 965 123 ─────────────────────────────────────────────────────────────────────────────── Total 8 1667 147 555 965 123 ─────────────────────────────────────────────────────────────────────────────── ─────────────────────────────────────────────────── ─────────────────────────────────────────────────────────────────────────────── Language Files Lines Blanks Comments Code Complexity ─────────────────────────────────────────────────────────────────────────────── JavaScript 14 2732 543 248 1941 34 ─────────────────────────────────────────────────────────────────────────────── Total 14 2732 543 248 1941 34
11. How covered is the protocol's code? (%)
A coverage report is provided, 99%
12. Is there a detailed report of the protocol's test results?(%)
A coverage report is provided. This gives a 70% score.
13. Has the protocol undergone Formal Verification? (Y/N)
This protocol has not undergone formal verification.
This section looks at the 3rd party software audits done. It is explained in this document.
14. Is the protocol sufficiently audited? (%)
Inverse Finance has undergone multiple audits as part of a newly enacted smart-contract review process. The audits were conducted by Code4rena, Nomoi, DefiMoon, and Peckshield. Inverse hosted a 5-day open bug bounty contest on Code4rena, and Nomoi audited FiRM without finding any significant vulnerabilities. DefiMoon provided security consulting and auditing for various contracts, and Peckshield performed an audit in Q2 2022. All these audits demonstrate Inverse Finance's commitment to security and transparency.
15. Is there a matrix of audit applicability on deployed code (%)? Please refer to the example doc for reference.
No matrix of audit applicability found.
16. Is the bug bounty value acceptably high (%)
17. Is there documented protocol monitoring (%)?
Location: https://docs.inverse.finance/inverse-finance-risk/prevention/alerting-system This shows evidence of a mature system of unchained monitoring with an incident response system implemented. Score 100%.
18. Is there documented protocol front-end monitoring (%)?
No evidence of front and monitoring was found. [...]
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. Is the protocol code immutable or upgradeable? (%)
Code is immutable.
20. Is the protocol's code upgradeability clearly explained in non technical terms? (%)
Yes, clearly described here: https://docs.inverse.finance/inverse-finance/technical/smart-contracts
21. Are the admin addresses, roles and capabilities clearly explained? (%)
Yes, clearly explained here: https://docs.inverse.finance/inverse-finance-risk/security/multisigs
22. Are the signers of the admin addresses clearly listed and provably distinct humans? (%)
Inverse has excellent transparency in their multisigs here. This is a clear 60% and as many signers are distinct humans we will award an 80%
23. Is there a robust documented transaction signing policy? Please refer to the Example doc for reference.(%)
No transaction signing policy is evident.
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.
24. Are Oracles relevant? (Y/N)
Yes: https://docs.inverse.finance/inverse-finance/technical/smart-contracts#oracles
25. Is the protocol's Oracle sufficiently documented? (%)
Oracle contracts specified here: https://docs.inverse.finance/inverse-finance/technical/smart-contracts#oracles Oracle logic specified here: https://docs.inverse.finance/inverse-finance-risk/security/firm-features#pessimistic-price-oracles
26. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
Yes: Explanation here: https://docs.inverse.finance/inverse-finance-risk/security/firm-features#pessimistic-price-oracles