Ledgity

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

Ledgity Yield \-  → is a stablecoin yield protocol backed by real-world assets (RWA). It aims to provide a stable and institutional-grade treasury management solution for stablecoins holders, and bridges the gap between DeFi and TradFi by offering real yield based on real assets.

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

Ledgity Yield is a protocol that aims to provide stablecoins holders with a stable and scalable on-chain treasury management solution, backed by Real World Assets (RWA) with the following contracts:

• LToken.sol  — is the main contract of the Ledgity Yield protocol as it powers every. It acts as a bridge between DeFi and TradFi worlds by allowing wallets to deposit stablecoins and Ledgity team to manage those stablecoins straightforwardly and securely.

• InvestUpgradeable.sol  — is the derived contracts that are provided with utilities to manage an invested token, users' investment periods, rewards calculations, virtual balances, and auto-compounding.

• APRHistory.sol — is the managing the history of Annual Percentage Rates (APRs) on-chain. It uses a space-efficient storage pattern to minimize gas costs.

• ERC20BaseUpgradeable.sol — is an extension of BaseUpgradeable intended to be used as a base for ERC20 token contracts.

• BaseUpgradeable.sol — is an abstract contract that acts as a base for numerous contracts in this codebase, minimizing code repetition and enhancing readability and maintainability.

• SUD.sol — serves as an intermediary number format for calculations within this codebase. It ensures consistency and reduces precision losses. This library facilitates conversions between various number formats and the SUD format.

• GlobalPause.sol — is a contract that holds a global pause state for the entire Ledgity Yield ecosystem. This is very practical, because if a potentially dangerous situation for the protocol is detected, the whole protocol's ecosystem can be paused by a single on-chain transaction.

• GlobalOwnableUpgradeable.sol — is designed for upgradeable contracts to inherit a centralized ownership model from a specified GlobalOwner contract.

• GlobalBlacklist.sol — this contract maintains a global registry of blacklisted wallets. This is notably used for AML enforcement but also as a general way to recover funds originating from malicious operations (e.g., other protocol hacks).

• GlobalRestrictableUpgradeable.sol — is designed for security and upgradeability, with a focus on centralized blacklist management for a suite of contracts.

• GlobalPausableUpgradeable.sol —  provides a centralized way to pause functionality across multiple contracts by referencing a shared GlobalPause contract.

• RecoverableUpgradeable.sol — is designed for asset recovery, specifically ERC20 tokens, in upgradeable contracts while ensuring ownership and proper initialization. It's part of a system that prioritizes security and future extensibility.

• LTokenSignaler.sol — Used to inform subgraph from the existence of a new L-Token contract. Once signaled, an L-Token will start being indexed.

• GlobalOwner — this contract holds the addresses of the Ledgity Yield protocol's owner (multisig), shared by all contracts of the ecosystem.

• DummyLDYStaking.sol — the contract acts as a placeholder for the real LDYStaking contract until this one is deployed.

Privileged roles

• The admin of the LToken.sol contract has several key responsibilities and capabilities:

• • Update the logic of the system.

  • Pause the transfers and withdrawals.

  • Change the user staking delegates.

  • Blacklist users.

  • Can claim unclaimed fees generated from successful withdrawals.

  • Can recover ERC20 tokens mistakenly sent to the contract (recoverERC20), except for the underlying token.

  • Can add (listenToTransfers) or remove (unlistenToTransfers) contracts that listen to L-Token transfers.

  • Can set parameters like withdrawal fees rate (setFeesRate), retention rate (setRetentionRate), and addresses for the LDYStaking contract (setLDYStaking), withdrawer wallet (setWithdrawer), and fund wallet (setFund).

• The Fund account processes big withdrawal requests and responsible for keeping LToken contract balance sufficient for the users withdrawals.

• The Withdrawer processes the queue of user transactions.

The total Documentation Quality score is 10 out of 10.

• Functional requirements are provided.

• Technical requirements are provided.

The total Code Quality score is 9 out of 10.

• The code contains minor best practices violations.

Code coverage of the project is 94.39% (branch coverage),

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

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.

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.

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