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FAIL
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://hegic.gitbook.io/start/developers/contracts, as indicated in the Appendix.
2. Is the code actively being used? (%)
Activity is 10 transactions a month on contract Hegic WBTC Options Contract (mainnet) as indicated in the Appendix.
3. Is there a public software repository? (Y/N)
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? (%)
At just two branches and 23 commits, Hegic's development history is not one we'd hedge our bets with.
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: The anonymous Molly Wintermute is the creator of Hegic.
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)
There are no software functions in the Hegic documentation.
8. Does the software function documentation fully (100%) cover the deployed contracts? (%)
Contracts are identified, but there is no software function documentation. The diagram provides insufficient detail to explain how the contracts operate.
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 (%)
The documentation lists the functions but does not describe them.
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) (%)
Tests for code coverage gave back 47.36%.
13. Scripts and instructions to run the tests? (Y/N)
Scripts/Instructions location: https://github.com/hegic/Hegic-protocol-v8888
14. Report of the results (%)
No test report was found.
15. Formal Verification test done (%)
No formal verification was found.
16. Stress Testing environment (%)
Hegic is deployed to Ropsten testnet.
This section looks at the 3rd party software audits done. It is explained in this document.
17. Did 3rd Party audits take place? (%)
No audits have taken place on Hegic V8888. Older versions (V888) have been audited by PeckShield, but since V8888 is a different strapiuct this iteration remains unaudited.
18. Is the bug bounty acceptable high? (%)
Hegic announced an intention to launch a bug bounty program, but no follow-up 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. Can a user clearly and quickly find the status of the access controls (%)
There is no access control information. For older versions, admin information was found but this must be updated in V888 documentation in order to remain relevant.
20. Is the information clear and complete (%)
No V8888 relevant information was found.
21. Is the information in non-technical terms that pertain to the investments (%)
No information was found.
22. Is there Pause Control documentation including records of tests (%)
No pause control documentation was found.
1import "../Interfaces/Interfaces.sol";
2import "../Interfaces/IOptionsManager.sol";
3
4/**
5 * @author 0mllwntrmt3
6 * @title Hegic Protocol V8888 Facade Contract
7 * @notice The contract that calculates the options prices,
8 * conducts the process of buying options, converts the premiums
9 * into the token that the pool is denominated in and grants
10 * permissions to the contracts such as GSN (Gas Station Network).
11 **/
12
13contract Facade is Ownable {
14 using SafeERC20 for IERC20;
15
16 IWETH public immutable WETH;
17 IUniswapV2Router01 public immutable exchange;
18 IOptionsManager public immutable optionsManager;
19 address public _trustedForwarder;
20
21 constructor(
22 IWETH weth,
23 IUniswapV2Router01 router,
24 IOptionsManager manager,
25 address trustedForwarder
26 ) {
27 WETH = weth;
28 exchange = router;
29 _trustedForwarder = trustedForwarder;
30 optionsManager = manager;
31 }
32
33 /**
34 * @notice Used for calculating the option price (the premium) and using
35 * the swap router (if needed) to convert the tokens with which the user
36 * pays the premium into the token in which the pool is denominated.
37 * @param period The option period
38 * @param amount The option size
39 * @param strike The option strike
40 * @param total The total premium
41 * @param baseTotal The part of the premium that
42 * is distributed among the liquidity providers
43 * @param settlementFee The part of the premium that
44 * is distributed among the HEGIC staking participants
45 **/
46 function getOptionPrice(
47 IHegicPool pool,
48 uint256 period,
49 uint256 amount,
50 uint256 strike,
51 address[] calldata swappath
52 )
53 public
54 view
55 returns (
56 uint256 total,
57 uint256 baseTotal,
58 uint256 settlementFee,
59 uint256 premium
60 )
61 {
62 (uint256 _baseTotal, uint256 baseSettlementFee, uint256 basePremium) =
63 getBaseOptionCost(pool, period, amount, strike);
64 if (swappath.length > 1)
65 total = exchange.getAmountsIn(_baseTotal, swappath)[0];
66 else total = _baseTotal;
67
68 baseTotal = _baseTotal;
69 settlementFee = (total * baseSettlementFee) / baseTotal;
70 premium = (total * basePremium) / baseTotal;
71 }
72
73 /**
74 * @notice Used for calculating the option price (the premium)
75 * in the token in which the pool is denominated.
76 * @param period The option period
77 * @param amount The option size
78 * @param strike The option strike
79 **/
80 function getBaseOptionCost(
81 IHegicPool pool,
82 uint256 period,
83 uint256 amount,
84 uint256 strike
85 )
86 public
87 view
88 returns (
89 uint256 total,
90 uint256 settlementFee,
91 uint256 premium
92 )
93 {
94 (settlementFee, premium) = pool.calculateTotalPremium(
95 period,
96 amount,
97 strike
98 );
99 total = premium + settlementFee;
100 }
101
102 /*
103 * @notice Used for approving the pools contracts addresses.
104 **/
105 function poolApprove(IHegicPool pool) external {
106 pool.token().safeApprove(address(pool), 0);
107 pool.token().safeApprove(address(pool), type(uint256).max);
108 }
109
110 /*
111 * @notice Used for buying the option contract and converting
112 * the buyer's tokens (the total premium) into the token
113 * in which the pool is denominated.
114 * @param period The option period
115 * @param amount The option size
116 * @param strike The option strike
117 * @param acceptablePrice The highest acceptable price
118 **/
119 function createOption(
120 IHegicPool pool,
121 uint256 period,
122 uint256 amount,
123 uint256 strike,
124 address[] calldata swappath,
125 uint256 acceptablePrice
126 ) external {
127 address buyer = _msgSender();
128 (uint256 optionPrice, uint256 rawOptionPrice, , ) =
129 getOptionPrice(pool, period, amount, strike, swappath);
130 require(
131 optionPrice <= acceptablePrice,
132 "Facade Error: The option price is too high"
133 );
134 IERC20 paymentToken = IERC20(swappath[0]);
135 paymentToken.safeTransferFrom(buyer, address(this), optionPrice);
136 if (swappath.length > 1) {
137 if (
138 paymentToken.allowance(address(this), address(exchange)) <
139 optionPrice
140 ) {
141 paymentToken.safeApprove(address(exchange), 0);
142 paymentToken.safeApprove(address(exchange), type(uint256).max);
143 }
144
145 exchange.swapTokensForExactTokens(
146 rawOptionPrice,
147 optionPrice,
148 swappath,
149 address(this),
150 block.timestamp
151 );
152 }
153 pool.sellOption(buyer, period, amount, strike);
154 }
155
156 /**
157 * @notice Used for converting the liquidity provider's Ether (ETH)
158 * into Wrapped Ether (WETH) and providing the funds into the pool.
159 * @param hedged The liquidity tranche type: hedged or unhedged (classic)
160 **/
161 function provideEthToPool(
162 IHegicPool pool,
163 bool hedged,
164 uint256 minShare
165 ) external payable returns (uint256) {
166 WETH.deposit{value: msg.value}();
167 if (WETH.allowance(address(this), address(pool)) < msg.value)
168 WETH.approve(address(pool), type(uint256).max);
169 return pool.provideFrom(msg.sender, msg.value, hedged, minShare);
170 }
171
172 /**
173 * @notice Unlocks the array of options.
174 * @param optionIDs The array of options
175 **/
176 function unlockAll(IHegicPool pool, uint256[] calldata optionIDs) external {
177 uint256 arrayLength = optionIDs.length;
178 for (uint256 i = 0; i < arrayLength; i++) {
179 pool.unlock(optionIDs[i]);
180 }
181 }
182
183 /**
184 * @notice Used for granting the GSN (Gas Station Network) contract
185 * the permission to pay the gas (transaction) fees for the users.
186 * @param forwarder GSN (Gas Station Network) contract address
187 **/
188 function isTrustedForwarder(address forwarder) public view returns (bool) {
189 return forwarder == _trustedForwarder;
190 }
Comments to Code: 441 / 779 = 57 %
Tests to Code: 1508 / 779 = 194 %