Q1 2025 Web3 Security ReportAccess control failures led to $1.63 billion in losses
Discover report insights
  • Hacken
  • Audits
  • vechain-foundation
  • [SCA] Vechain Foundation / Marketplace / Nov2023
Vechain Foundation logo

Vechain Foundation

Audit name:

[SCA] Vechain Foundation / Marketplace / Nov2023

Date:

Dec 21, 2023

Table of Content

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

Want a comprehensive audit report like this?

Introduction

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

VeChain is an enterprise grade, white-label marketplace-as-a-Service solution where enterprises will be able to launch and customise a marketplace for their NFT collections on the vechain blockchain.

titlecontent
PlatformEVM
LanguageSolidity
TagsMarketplace
Timeline09/11/2023 - 28/11/2023
Methodologyhttps://hackenio.cc/sc_methodology→

    Review Scope

    Repositoryhttps://github.com/vechainfoundation/nft-maas-sc→
    Commitab09639829a

    Audit Summary

    Total9.6/10
    Security Score

    10/10

    Test Coverage

    90.2%

    Code Quality Score

    10/10

    Documentation Quality Score

    10/10

    20Total Findings
    20Resolved
    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 Vechain Foundation
    Audited ByHacken
    Websitehttps://www.vechain.org/→
    Changelog16/09/2023 - Initial Review
    28/11/2023 - Second Review

    • Document

      Name
      Smart Contract Code Review and Security Analysis Report for Vechain Foundation
      Audited By
      Hacken
      Website
      https://www.vechain.org/→
      Changelog
      16/09/2023 - Initial Review
      28/11/2023 - Second Review

    System Overview

    The audit scope is composed by three implementations of marketplaces for ERC721 tokens (VIP181 since the project is going to be deployed on VeChain):

    • OfferContractVIP180 - a contract which allows to set offers for specific NFTs or NFT collections, the purchase offer might be made with ERC-20/VIP-180 tokens.

    • WorldOfVBidAuction - a contract for NFT auctions, which allows to set up auctions for the NFT and specify the token which should be used for purchase. Purchase might be made via an ERC-20/VIP-180 token or native token.

    • WorldOfVFixedPriceNonCustodial - non custodial marketplace where the seller creates a listing and anyone as a buyer may execute the sale by providing the price requested by the seller.

    Privileged roles

    • The role DEFAULTADMINROLE can set “rotate” code to change the operator, and modify the foundation fee.

    • The role OPERATOR_ROLE can:

      • Cancel any listing on WorldOfVFixedPriceNonCustodial contract.

      • Cancel any auction on WorldOfVBidAuction contract.

      • Pause the contract to block such functionality:

        • OfferContrctVIP180

        • WorldOfBidAuction

        • WorldOfVFixedPriceNonCustodial

      • Whitelist/de-whitelist VIP-180 and VIP-181 tokens which might be used.

      • Modify enterprise fees.

      • Withdraw VTHO tokens from the contracts.

    Executive Summary

    Documentation quality

    The total Documentation quality score is 10 out of 10.

    • Functional requirements are provided.

    • Technical description is provided.

    • NatSpec is complete.

    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 90.2% (branch coverage).

    • Deployment and basic user interactions are covered with tests.

    Security score

    Upon auditing, the code was found to contain 0 critical, 2 high, 1 medium, and 7 low severity issues. Out of these, 10 issues have been addressed and resolved, 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 9.6. This score reflects the combined evaluation of documentation, code quality, test coverage, and security aspects of the project.

    Risks

    Fee-on-transfer tokens should not be whitelisted as they are not compatible with the marketplaces.

    The marketplaces allow for enterprise and foundation fees, each one is capped to 20%. There is thus the possibility for the marketplace fees to be 40% of the paid price.

    The fees amount specified by NFT contracts following the ERC2981 standard, is overridden to be \<= 50%.

    The contracts allow OPERATOR_ROLE to perform actions on behalf of the users. Such functionality should be carefully implemented through backend checks to prevent misuse from malicious users.

    The contract WorldOfVBidAuction allows to create an auction with a start date in the past, while checking that the end date is in the future.

    Auctions on WorldOfVBidAuction are not enforced: the seller can cancel them even when they are expired.

    Operators can cancel any auction on WorldOfVBidAuction and any listing on WorldOfVFixedPriceNonCustodial.

    Fees in WorldOfVFixedPriceNonCustodial are retroactive: when changed by the administrators, also open listings are affected.

    VTHO tokens might be withdrawn from the contract by the Operator.

    The contracts are upgradable, the logic and implementation might be changed by the admin.

    The proxy implementation is out of scope.

    When the OfferContractVIP180 contract is paused any existing offer might still be accepted.

    Findings

    Code
    ―
    Title
    Status
    Severity
    F-2023-0733Requirements Violation, Admin Cannot Cancel Users’ Auctions
    fixed

    High
    F-2023-0732Denial of Service - Broken Functionality of the Auction
    fixed

    High
    F-2023-0734Redundant receive() functionality
    fixed

    Medium
    F-2023-0741Unfinalized Code
    fixed

    Low
    F-2023-0740Missing Event Emitting
    fixed

    Low
    F-2023-0739Unvalidated Parameters
    fixed

    Low
    F-2023-0738Unclear Require Statement Error Strings
    fixed

    Low
    F-2023-0737Redundant SafeMath Library
    fixed

    Low
    F-2023-0736 Funds Collected By Operators Instead Of By Admins
    fixed

    Low
    F-2023-0735Check-Effect-Interaction Pattern Violation
    fixed

    Low
    1-10 of 20 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

    Repositoryhttps://github.com/vechainfoundation/nft-maas-sc→
    Commitab09639829a
    WhitepaperNot provided
    RequirementsProvided
    Technical RequirementsProvided

    Contracts in Scope

    BaseMarketplaceContract.sol - BaseMarketplaceContract.sol
    OfferContractVIP180.sol - OfferContractVIP180.sol
    WorldOfVBidAuction.sol - WorldOfVBidAuction.sol
    WorldOfVFixedPriceNonCustodial.sol - WorldOfVFixedPriceNonCustodial.sol
    contracts
    Governance
    Timelock.sol - contracts/Governance/Timelock.sol

    Disclaimer