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PAID Network

Audit name:

[SCA] PAIDNetwork | Staking | Jan2024

Date:

Jan 20, 2024

Table of Content

→Introduction
→Audit Summary
→Document Information
→System Overview
→Executive Summary
→Risks
→Findings
→Appendix 1. Severity Definitions
→Appendix 2. Scope
→Disclaimer

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Introduction

We express our gratitude to the Ignition Staking 2.0 team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.

Ignition Staking 2.0 is a staking platform featuring an off-chain reward mechanism. It enables the deposit of PAID tokens in exchange for sPAID tokens.

titlecontent
PlatformEVM
LanguageSolidity
TagsERC20, Staking
Timeline15/01/2024 - 16/01/2024
Methodologyhttps://hackenio.cc/sc_methodology→

    Review Scope

    Repositoryhttps://github.com/PAIDNetwork/ignition-sc-staking→
    Commit9478499

    Audit Summary

    Total10/10
    Security Score

    10/10

    Test Coverage

    100%

    Code Quality Score

    10/10

    Documentation Quality Score

    10/10

    5Total Findings
    5Resolved
    0Accepted
    0Mitigated

    The system users should acknowledge all the risks summed up in the risks section of the report

    Document Information

    This report may contain confidential information about IT systems and the intellectual property of the Customer, as well as information about potential vulnerabilities and methods of their exploitation.

    The report can be disclosed publicly after prior consent by another Party. Any subsequent publication of this report shall be without mandatory consent.

    Document

    NameSmart Contract Code Review and Security Analysis Report for Ignition Staking 2.0
    Audited ByEren Gonen
    Approved ByGrzegorz Trawinski
    Websitehttps://paidnetwork.com/→
    Changelog16/01/2024 - Preliminary Report
    09/01/2024 - Remediation

    • Document

      Name
      Smart Contract Code Review and Security Analysis Report for Ignition Staking 2.0
      Audited By
      Eren Gonen
      Approved By
      Grzegorz Trawinski
      Website
      https://paidnetwork.com/→
      Changelog
      16/01/2024 - Preliminary Report
      09/01/2024 - Remediation

    System Overview

    Ignition Staking 2.0 is a staking platform where users can lock their PAID tokens to receive sPAID tokens in exchange. This system allows users the option to withdraw their deposited PAID tokens by burning the corresponding sPAID tokens. A tax is applied to both deposit and withdrawal transactions. Notably, the reward mechanism off-chain. The relevant contracts are as follows:

    ERC20  — A simple ERC-20 token mints the deposited amount to the user when they execute a deposit and burns the amount when the user executes a withdrawal. The owner does not have the right to mint or burn tokens.

    It has the following attributes:

    • Name: Staked PAID

    • Symbol: sPAID

    • Decimals: 18

    • Total supply: N/A.

    SPAID —A contract that mints sPAID tokens when a user deposits PAID tokens and burns sPAID when a user wishes to withdraw the deposited PAID token amount.

    Privileged roles

    • The owner of the contract can update the deposit and withdrawal tax amounts within a range of 1-10.

    • The owner has the capability to update the treasury wallet address

    • The owner can withdraw the all deposited PAID tokens from the contract.

    Executive Summary

    Documentation quality

    The total Documentation Quality score is 10 out of 10.

    • Functional requirements are provided.

    • Technical description is provided.

    Code quality

    The total Code Quality score is 10 out of 10.

    • The development environment is configured.

    Test coverage

    Code coverage of the project is 100% (branch coverage).

    • Deployment and user interactions are thoroughly tested, covering both negative and positive cases.

    Security score

    Upon auditing, the code was found to contain 0 critical, 0 high, 0 medium, and 1 low severity issues, leading to a security score of 10 out of 10.

    All identified issues are detailed in the “Findings” section of this report.

    Summary

    The comprehensive audit of the customer's smart contract yields an overall score of 10. This score reflects the combined evaluation of documentation, code quality, test coverage, and security aspects of the project.

    Scoring Methodologyarrow right

    Risks

    The owner of the contract has the authority to transfer all deposited PAID tokens after a user's deposit. The withdrawal of deposited PAID tokens is not guaranteed.

    The reward mechanism is entirely off-chain and cannot be verified.

    Findings

    Code
    ―
    Title
    Status
    Severity
    F-2024-0463Unchecked Transfers Operations
    fixed

    Low
    F-2024-0464Inefficient Gas Usage in withdraw() and withdrawAllStaked() Functions Due to Use of transferFrom()
    fixed

    Observation
    F-2024-0462Missing Events
    fixed

    Observation
    F-2024-0461Redundant Check in deposit() Function Due to Tautology in Requirement
    fixed

    Observation
    F-2024-0460Solidity version 0.8.20 might not work on all chains due to PUSH0
    fixed

    Observation
    1-5 of 5 findings

    Identify vulnerabilities in your smart contracts.

    Appendix 1. Severity Definitions

    When auditing smart contracts, Hacken is using a risk-based approach that considers Likelihood, Impact, Exploitability and Complexity metrics to evaluate findings and score severities.

    Reference on how risk scoring is done is available through the repository in our Github organization:

    Severity

    Description

    Critical
    		Critical vulnerabilities are usually straightforward to exploit and can lead to the loss of user funds or contract state manipulation.

    High
    		High vulnerabilities are usually harder to exploit, requiring specific conditions, or have a more limited scope, but can still lead to the loss of user funds or contract state manipulation.

    Medium
    		Medium vulnerabilities are usually limited to state manipulations and, in most cases, cannot lead to asset loss. Contradictions and requirements violations. Major deviations from best practices are also in this category.

    Low
    		Major deviations from best practices or major Gas inefficiency. These issues will not have a significant impact on code execution, do not affect security score but can affect code quality score.

    • Severity

      Critical

      Description

      Critical vulnerabilities are usually straightforward to exploit and can lead to the loss of user funds or contract state manipulation.

      Severity

      High

      Description

      High vulnerabilities are usually harder to exploit, requiring specific conditions, or have a more limited scope, but can still lead to the loss of user funds or contract state manipulation.

      Severity

      Medium

      Description

      Medium vulnerabilities are usually limited to state manipulations and, in most cases, cannot lead to asset loss. Contradictions and requirements violations. Major deviations from best practices are also in this category.

      Severity

      Low

      Description

      Major deviations from best practices or major Gas inefficiency. These issues will not have a significant impact on code execution, do not affect security score but can affect code quality score.

    Appendix 2. Scope

    The scope of the project includes the following smart contracts from the provided repository:

    Scope Details - Initial

    Repositoryhttps://github.com/PAIDNetwork/ignition-sc-staking→
    Commit235a9a33f30314861e9b8b63add9ace2f5d114ba
    WhitepaperNot Provided
    Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→
    Technical Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→

    Scope Details - Second

    Repositoryhttps://github.com/PAIDNetwork/ignition-sc-staking→
    Commitd5fd4cb0c544b689c6688cba7d6a95e0ac8e2865
    WhitepaperNot Provided
    Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→
    Technical Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→

    Scope Details - Third

    Repositoryhttps://github.com/PAIDNetwork/ignition-sc-staking→
    Commit9478499ec973e64001b89401ddb1a9edd002715b
    WhitepaperNot Provided
    Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→
    Technical Requirementshttps://github.com/PAIDNetwork/ignition-sc-staking/blob/main/README.md→

    Contracts in Scope

    contracts
    SPAID.sol - contracts › SPAID.sol

    Disclaimer