Q2 2026 Security & Compliance Report67 incidents, $764M in losses, 88% from operational failures.
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Audit name:

[SCA] Blocksquare | Staking | Jan2023

Date:

Mar 9, 2023

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 BlockSquare team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.

Blocksquare is a technology company building the required infrastructure to transfer real estate assets to the internet.

titlecontent
PlatformEVM
LanguageSolidity
TagsERC20; Staking
Timeline06/01/2023 - 08/03/2023
Methodologyhttps://hackenio.cc/sc_methodology→

    Review Scope

    Repositoryhttps://github.com/blocksquare/LPStaking-Audit→
    Commit08f6760a66c8e490a550202a8d504d0adf1f21cc

    Audit Summary

    Total9.4/10
    Security Score

    10/10

    Test Coverage

    69.23%

    Code Quality Score

    8/10

    Documentation Quality Score

    8/10

    26Total Findings
    26Resolved
    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 BlockSquare
    Audited ByHacken
    Websitehttps://blocksquare.io/→
    Changelog13/01/2023 - Initial Review
    02/02/2023 - Second Review
    09/02/2023 - Third Review
    08/03/2023 - Fourth Review
    • Document

      Name
      Smart Contract Code Review and Security Analysis Report for BlockSquare
      Audited By
      Hacken
      Changelog
      13/01/2023 - Initial Review
      02/02/2023 - Second Review
      09/02/2023 - Third Review
      08/03/2023 - Fourth Review

    System Overview

    LPStaking is a staking system allowing to stake ERC20 tokens (“LP”) for the reward in the form of another token (“Reward Token”).

    Privileged roles

    • The Smart Contract has an Owner role, but its usage is limited to serving as a parameter for indexing events.

    Executive Summary

    Documentation quality

    The total Documentation quality score is 8 out of 10.

    • Functional requirements are partially missing.

    • Technical description is provided.

    • The code is extensively documented using NatSpec.

    Code quality

    The total Code quality score is 8 out of 10.

    • Test coverage is insufficient.

    • CEI pattern violations are masked by nonReentrant.

    Test coverage

    Code coverage of the project is 69.23% (branch coverage).

    • Not all negative scenarios are covered.

    Security score

    Upon auditing, the code was found to contain 1 critical, 3 high, 4 medium, and 18 low severity issues. Out of these, 26 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 9.4. This score reflects the combined evaluation of documentation, code quality, test coverage, and security aspects of the project.

    Risks

    No substantial risks were identified.

    Findings

    F-2023-0294Requirements Violation
    Status
    fixed
    Severity

    Critical
    F-2023-0297Use of Hard-Coded Values
    Status
    fixed
    Severity

    High
    F-2023-0296Denial of Service Vulnerability
    Status
    fixed
    Severity

    High
    F-2023-0295Non-Finalized Code
    Status
    fixed
    Severity

    High
    F-2023-0301Contradiction - Missing Validation
    Status
    fixed
    Severity

    Medium
    F-2023-0300Unscalable Functionality - Bad Variable Naming
    Status
    fixed
    Severity

    Medium
    F-2023-0299Best Practice Violation - Unchecked Transfer
    Status
    fixed
    Severity

    Medium
    F-2023-0298Unscalable Functionality - Shadowing State Variables
    Status
    fixed
    Severity

    Medium
    F-2023-0329Style Guide Violation
    Status
    fixed
    Severity

    Low
    F-2023-0328Style Guide Violation
    Status
    fixed
    Severity

    Low
    Code
    ―
    Title
    Status
    Severity
    F-2023-0294Requirements Violation
    fixed

    Critical
    F-2023-0297Use of Hard-Coded Values
    fixed

    High
    F-2023-0296Denial of Service Vulnerability
    fixed

    High
    F-2023-0295Non-Finalized Code
    fixed

    High
    F-2023-0301Contradiction - Missing Validation
    fixed

    Medium
    F-2023-0300Unscalable Functionality - Bad Variable Naming
    fixed

    Medium
    F-2023-0299Best Practice Violation - Unchecked Transfer
    fixed

    Medium
    F-2023-0298Unscalable Functionality - Shadowing State Variables
    fixed

    Medium
    F-2023-0329Style Guide Violation
    fixed

    Low
    F-2023-0328Style Guide Violation
    fixed

    Low
    1-10 of 26 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/blocksquare/LPStaking-Audit→
    Commit08f6760a66c8e490a550202a8d504d0adf1f21cc
    WhitepaperNot provided
    RequirementsProvided→
    Technical RequirementsProvided→

    Contracts in Scope

    contracts
    LPStaking.sol - contracts › LPStaking.sol

    Disclaimer