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Process Quality Review (0.9)
AAVE V2
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? (%)
Yes. Given that V2 is an old version, the route is slightly more convoluted. You go to operate docs from the website, then Developers then click V2. The deployed contractssection is clearly visible.
2. Does the protocol have a public software repository? (Y/N)
GitHub: https://github.com/aave/protocol-v2.
3. Is the team public (not anonymous)?
Aave has many public and anonymous developers.
4. How responsive are the devs when we present our initial report?
Quick response from devs.
Code Documentation
87%
This section looks at the software documentation. The document explaining these questions is here.
5. Is there a whitepaper? (Y/N)
Yes: https://github.com/aave/protocol-v2/blob/master/aave-v2-whitepaper.pdf
6. Is the protocol's software architecture documented? (%)
Good architecture diagram available with technical overview. Score 75%.
7. Does the software documentation fully cover the deployed contracts' source code? (%)
There is excellent documentation on all functions available in the documentation. Score 100%.
8. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)
60% Clear association between code and documents via non explicit traceability
9. Is the documentation organized to ensure information availability and clarity? (%)
The documentation is very well organized. Score 100%.
Testing
91%
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? (%)
As per the GitHub, there is 349% testing to code (TtC).
11. How covered is the protocol's code? (%)
There is no coverage report. But given the level of tests that are obviously considerable test coverage. Score 50%, as per guidance.
12. Is there a detailed report of the protocol's test results?(%)
There is a test report in the Sigma prime audit report. Score 100%.
13. Has the protocol undergone Formal Verification? (Y/N)
There is a Cetora formal validation report.
Security
89%
This section looks at the 3rd party software audits done. It is explained in this document.
14. Is the protocol sufficiently audited? (%)
Multiple high-quality AAVE audit reports were published before and after V1 and V2 deployment. The results were also implemented. These reports can be found here.
15. Is there a matrix of audit applicability on deployed code (%)? Please refer to the example doc for reference.
The audit page in the documentation breaks down the various audits with excellent granularity. This offers the equivalent of 100% score.
16. Is the bug bounty value acceptably high (%)
AAVE has an active bug bounty program with Immunifi for $1 million. This corresponds to a score of 100%.
17. Is there documented protocol monitoring (%)?
While I'm sure that AAVE is doing protocol monitoring for security purposes, I could find no documentation referring to this. This drives a score of 0%.
18. Is there documented protocol front-end monitoring (%)?
The AAVE website is controlled by a separate centralized entity that is separate from the AAVE protocol. While I am reasonably confident that the website has comprehensive front-end monitoring, there is no documentation which results in a score of 0%.[...]
Admin Controls
83%
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? (%)
AAVE is generally updateable via governance, with a timelock. As per revised guidance, this gives a 90% score.
20. Is the protocol's code upgradeability clearly explained in non technical terms? (%)
AAVE is almost fully upgradable via governance, with a time lock. This is not clearly described in the documentation. More clarity is required. Score 50%, as per guidance.
21. Are the admin addresses, roles and capabilities clearly explained? (%)
All admin roles are executed based on governance voting. This gives a score of 100%.
22. Are the signers of the admin addresses clearly listed and provably distinct humans? (%)
Given that the admin actions take place through governance voting, this defaults to 100%.
23. Is there a robust documented transaction signing policy? Please refer to the Example doc for reference.(%)
Since all admin actions take place through governance, this defaults to 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? (%)
The Oracle section is very well documented. All aspects are covered. Score 100%.
26. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)
As the AAVE protocol produces flash loans the design Incorporated users using flash loans also. The security aspects are very well documented.