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Process Quality Review (0.7)
Liquity
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 audit looks for the following declarations from the developer's site. With these declarations, it is reasonable to trust the smart contracts.
- Here is my smart contract on the blockchain
- You can see it matches a software repository used to develop the code
- Here is the documentation that explains what my smart contract does
- Here are the tests I ran to verify my smart contract
- Here are the audit(s) performed to review my code by third party experts
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 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://docs.liquity.org/documentation/resources#contract-addresses, as indicated in the Appendix.
2. Is the code actively being used? (%)
Activity is 250 transactions a day on contract LQTYStaking.sol, as indicated in the Appendix.
3. Is there a public software repository? (Y/N)
GitHub: https://github.com/liquity/dev.
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? (%)
With 2737 commits and 42 branches, this is a robust software repo.
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)
Team members' identities are all public at https://www.liquity.org/team.
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".
Documentation
92%
This section looks at the software documentation. The document explaining these questions is here.
6. Is there a whitepaper? (Y/N)
Location: At the bottom of https://github.com/liquity/dev.
7. Are the basic software functions documented? (Y/N)
There is robust software function documentation at https://github.com/liquity/dev#public-user-facing-functions.
8. Does the software function documentation fully (100%) cover the deployed contracts? (%)
All of the Liquity smart contracts have their software functions detailed in depth at https://github.com/liquity/beta/blob/main/README.md#core-smart-contracts.
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 (%)
Clear traceability between software documentation and code implementation in https://github.com/liquity/dev#public-user-facing-functions.
Testing
90%
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) (%)
There is an indication of code coverage in the README.md of their main GitHub repository at https://github.com/liquity/dev#coverage.
13. Scripts and instructions to run the tests? (Y/N)
Test instructions are available at https://github.com/liquity/dev#running-tests.
14. Report of the results (%)
A fully detailed Liquity test report is available at https://github.com/liquity/dev/blob/main/packages/contracts/test-report.md.
15. Formal Verification test done (%)
No Formal Verification test of Liquity was found.
16. Stress Testing environment (%)
There is Rinkeby testnet testing evidence at https://github.com/liquity/dev/blob/7e5c38eff92c7de7b366ec791fd86abc2012952c/packages/contracts/mainnetDeployment/rinkebyDeploymentOutput.json
Security
96%
This section looks at the 3rd party software audits done. It is explained in this document.
17. Did 3rd Party audits take place? (%)
- Trails of Bits did a Liquity Proxy Contracts Report on March 5th 2021. - Trail of bits delivered their Liquidity Protocol and Stability Pool Final Report on March 25th 2021 - Coinspect did a liquity audit on March 39th 2021 - Trail of bits did a Liquity security assessment on January 13th - Liquity was launched April 5th 2021
18. Is the bug bounty acceptable high? (%)
Liquity's bug bounty program is as low as $500, and as high as $250,000.
Access Controls
100%
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 (%)
20. Is the information clear and complete (%)
All contracts are described as immutable at https://docs.liquity.org/faq/general#can-liquity-be-upgraded-or-changed.
21. Is the information in non-technical terms that pertain to the investments (%)
The information is in non-technical terms.
22. Is there Pause Control documentation including records of tests (%)
All contracts are automated and immutable upon launch, but no evidence of Pause Control or similar function. Note: they do have something called "recovery mode" which may be relevent to this section.
Appendices
1// SPDX-License-Identifier: MIT
2
3pragma solidity 0.6.11;
4
5import "../Dependencies/BaseMath.sol";
6import "../Dependencies/SafeMath.sol";
7import "../Dependencies/Ownable.sol";
8import "../Dependencies/CheckContract.sol";
9import "../Dependencies/console.sol";
10import "../Interfaces/ILQTYToken.sol";
11import "../Interfaces/ILQTYStaking.sol";
12import "../Dependencies/LiquityMath.sol";
13import "../Interfaces/ILUSDToken.sol";
14
15contract LQTYStaking is ILQTYStaking, Ownable, CheckContract, BaseMath {
16 using SafeMath for uint;
17
18 // --- Data ---
19 string constant public NAME = "LQTYStaking";
20
21 mapping( address => uint) public stakes;
22 uint public totalLQTYStaked;
23
24 uint public F_ETH; // Running sum of ETH fees per-LQTY-staked
25 uint public F_LUSD; // Running sum of LQTY fees per-LQTY-staked
26
27 // User snapshots of F_ETH and F_LUSD, taken at the point at which their latest deposit was made
28 mapping (address => Snapshot) public snapshots;
29
30 struct Snapshot {
31 uint F_ETH_Snapshot;
32 uint F_LUSD_Snapshot;
33 }
34
35 ILQTYToken public lqtyToken;
36 ILUSDToken public lusdToken;
37
38 address public troveManagerAddress;
39 address public borrowerOperationsAddress;
40 address public activePoolAddress;
41
42 / --- Events ---
43
44 event LQTYTokenAddressSet(address _lqtyTokenAddress);
45 event LUSDTokenAddressSet(address _lusdTokenAddress);
46 event TroveManagerAddressSet(address _troveManager);
47 event BorrowerOperationsAddressSet(address _borrowerOperationsAddress);
48 event ActivePoolAddressSet(address _activePoolAddress);
49
50 event StakeChanged(address indexed staker, uint newStake);
51 event StakingGainsWithdrawn(address indexed staker, uint LUSDGain, uint ETHGain);
52 event F_ETHUpdated(uint _F_ETH);
53 event F_LUSDUpdated(uint _F_LUSD);
54 event TotalLQTYStakedUpdated(uint _totalLQTYStaked);
55 event EtherSent(address _account, uint _amount);
56 event StakerSnapshotsUpdated(address _staker, uint _F_ETH, uint _F_LUSD);
57
58 / --- Functions ---
Solidity Contracts
Comments to Code: 2364 / 7611 = 31 %
JavaScript Tests
Tests to Code: 21875 / 7611 = 287 %