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Process Quality Review (0.9)
Term Finance
PASS
Scoring Appendix
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.
- Here are my smart contract on the blockchain(s)
- Here is the documentation that explains what my smart contracts do
- Here are the tests I ran to verify my smart contracts
- Here are all the security steps I took to safeguard these contracts
- Here is an explanation of the control I have to change these smart contracts
- Here is how these smart contracts get information from outside the blockchain (if applicable)
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.
Code and Team
100%
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 are found in the "Deployed Addresses" of the Developer docs.
2. Does the protocol have a public software repository? (Y/N)
Location: https://github.com/term-finance/
3. Is the team public (not anonymous)?
The team is public on their LinkIn page
4. How responsive are the devs when we present our initial report?
Devs responded quickly.
Code Documentation
91%
This section looks at the software documentation. The document explaining these questions is here.
5. Is there a whitepaper? (Y/N)
There is a comprehensive description of the protocol logic in the docs.
6. Is the protocol's software architecture documented? (%)
While there is not a full software architecture diagram and they're certainly not formal requirements, there is a good description of the architecture in the top of the software documentation. For this reason, a 75% score is given.
7. Does the software documentation fully cover the deployed contracts' source code? (%)
The combination of protocol software documentation, plus detailed function docs and the comments in the code allow a 100% score.
8. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
Excellent deep docs on every function allows strong implicit traceability to the code; 80%
9. Is the documentation organized to ensure information availability and clarity? (%)
The documentation for the software is clear and well organized.
Testing
100%
This section covers the testing process of the protocol’s smart contract code previous to its deployment on the mainnet. The document explaining these questions is here.
10. Has the protocol tested their deployed code? (%)
Test to Code = 85229 / 7762 = 1098% which gives a 100% score. ─────────────────────────────────────────────────────────────────────────────── Language Files Lines Blanks Comments Code Complexity ─────────────────────────────────────────────────────────────────────────────── JavaScript 27 7762 919 1168 5675 462 ─────────────────────────────────────────────────────────────────────────────── Total 27 7762 919 1168 5675 462 ─────────────────────────────────────────────────────────────────────────────── Estimated Cost to Develop $167,208 Estimated Schedule Effort 6.970319 months Estimated People Required 2.131193 ─────────────────────────────────────────────────────────────────────────────── Processed 294718 bytes, 0.295 megabytes (SI) ─────────────────────────────────────────────────────────────────────────────── C:\Users\Rex\Sync\DeFiSafety\DeFiSafety Common\Products\Processs Quality Reviews\Reviews\0.9\Term Finance\Flattened>cd C:\Users\Rex\Sync\DeFiSafety\DeFiSafety Common\Products\Processs Quality Reviews\Reviews\0.9\Term Finance\TestingEnv C:\Users\Rex\Sync\DeFiSafety\DeFiSafety Common\Products\Processs Quality Reviews\Reviews\0.9\Term Finance\TestingEnv>scc.exe ─────────────────────────────────────────────────────────────────────────────── Language Files Lines Blanks Comments Code Complexity ─────────────────────────────────────────────────────────────────────────────── JavaScript 811 85229 10588 25656 48985 3718 JSON 311 618833 0 0 618833 0 TypeScript 59 33394 3918 758 28718 356 Python 17 9695 659 1068 7968 106 Markdown 2 94 30 0 64 0 AsciiDoc 1 111 51 0 60 0 Dockerfile 1 38 10 10 18 9 License 1 22 4 0 18 0 Makefile 1 28 9 1 18 0 Plain Text 1 90 0 0 90 0 Shell 1 9 3 3 3 3 YAML 1 68 6 3 59 0 gitignore 1 1 0 0 1 0 ─────────────────────────────────────────────────────────────────────────────── Total 1208 747612 15278 27499 704835 4192
11. How covered is the protocol's code? (%)
Term finance uses codecov on its GitHub Rego and has coverage of 98.5%.
12. Is there a detailed report of the protocol's test results?(%)
Test report is visible in the github. It includes code coverage and tests,
13. Has the protocol undergone Formal Verification? (Y/N)
Term finance has done a full process of formal verification.
Security
89%
This section looks at the 3rd party software audits done. It is explained in this document.
14. Is the protocol sufficiently audited? (%)
Term Finance v1 underwent various security audits by credible firms like Sigma Prime, Runtime Verification, and Dedaub. These audits were conducted at different stages of the protocol's development, with the first initial review performed by Sigma Prime in April 2023, followed by an algorithm audit by Runtime Verification and subsequent changes reviewed by Sigma Prime and Dedaub. The audits ensure the overall quality of the protocol's smart contract code and adherence to best practices in the DeFi space.
15. Is there a matrix of audit applicability on deployed code (%)? Please refer to the example doc for reference.
The applicability of each audit is listed with the release section in the smart contract audits page.
16. Is the bug bounty value acceptably high (%)
No bug bounty was found.
17. Is there documented protocol monitoring (%)?
There's clear documentation on the protocol monitoring of this book contracts. There is also clear documentation on incident response. This all leads to a score of 100%.
18. Is there documented protocol front-end monitoring (%)?
There is dedicated documentation on front and security. This documentation includes incident response. This results in a score of 100%. [1.2.3.4]
Admin Controls
88%
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? (%)
The software is upgradable with a 24 hour time block and roles implemented in deployment. For this reason, we will give a 70% score. The time block is less than one week but it is there.
20. Is the protocol's code upgradeability clearly explained in non technical terms? (%)
In the "Upgradability" section of the developer docs upgrade capability of the software is clearly explained. 100% Code is upgradeable and clearly explained in non technical terms.
21. Are the admin addresses, roles and capabilities clearly explained? (%)
All admin access roles and capabilities are explained in clear detail in the developer documentation.
22. Are the signers of the admin addresses clearly listed and provably distinct humans? (%)
All signers are clearly listed, but not provably distinct humans. The team at Term Finance have said they will go through the DeFiSafety MultiSig certification to bring this to 100%. For initial release we will change the score to 100% in anticipation of this process.
23. Is there a robust documented transaction signing policy? Please refer to the Example doc for reference.(%)
At the bottom of the Access Controls page is a link to the signer compliance policy which is a fully compliant transaction signing policy and therefore gets 100%.
Oracles
100%
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)
25. Is the protocol's Oracle sufficiently documented? (%)
There is excellent price feed documentation in the developer section. It identifies the protocols the source and the frequency. Fully compliant. 100%
26. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
The Price Feeds page clearly lists why flash loans are not applicable; No Flashloan Attacks - A flashloan is a type of loan where a user can borrow assets with no upfront collateral so long as they return the borrowed assets within the same blockchain transaction (atomically). Given that loans through Term Protocol can be assigned only after (i) a bid a placed, (ii) the bid is revealed (in a separate transaction), and (iii) the bid is fulfilled in completeAuction(a third transaction), it is not possible to open a loan atomically and therefore not subject to flashloan attacks.