Audit name:
[SCA] Minteo | ERC20 + Proxy | Nov2023
Date:
Nov 15, 2023
Table of Content
Introduction
We express our gratitude to the Minteo team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.
Minteo creates blockchain based infrastructure to stimulate trade and enable new business models in Latin America. Minteo has the mission of providing a stable and reliable digital Colombian Peso: COPM, a fully collateralized stablecoin backed with highly liquid assets denominated in Colombian Pesos, held in reserve.
| title | content |
|---|---|
| Platform | Ethereum, Solana, Polygon, Huobi |
| Language | Solidity |
| Tags | ERC-20, UUPSProxy, Stablecoin |
| Timeline | 07/11/2023 - 14/11/2023 |
| Methodology | https://hackenio.cc/sc_methodology→ |
Review Scope | |
|---|---|
| Repository | https://github.com/minteo-wagmi/rwa-contracts→ |
| Commit | 985b0f30c05f1f801030e4d06282a3c7eb111917 |
Review Scope
- Commit
- 985b0f30c05f1f801030e4d06282a3c7eb111917
Audit Summary
10/10
100%
9/10
9/10
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 | |
|---|---|
| Name | Smart Contract Code Review and Security Analysis Report for Minteo |
| Audited By | Hacken |
| Website | https://minteo.com/→ |
| Changelog | 14/11/2023 – Preliminary Report |
Document
- Name
- Smart Contract Code Review and Security Analysis Report for Minteo
- Audited By
- Hacken
- Website
- https://minteo.com/→
- Changelog
- 14/11/2023 – Preliminary Report
System Overview
TokenV1 is a stablecoin solution with the following contracts:
TokenV1 — is an ERC-20 token with centralized authorization. Version 1 removes the possibility of flash loans. The contract is upgradable by means of UUPS Proxy. This contract inherits following OpenZepplin’s contracts: Initializable, ERC20Upgradeable, ERC20BurnableUpgradeable, PausableUpgradeable, AccessControlEnumerableUpgradeable, ERC20PermitUpgradeable, StorageGaps, UUPSUpgradeable, Freezable, MulticallUpgradeable.
It has the following attributes:
Name: COP Minteo.
Symbol: COPM.
Decimals: 18.
Total supply: not defined.
Freezable — a contract that allows to temporarily froze an account’s funds.
StorageGaps — a contract that reserves storage space after removing ERC20FlashMintUpgradeable from inheritance tree.
Privileged roles
The solution supports following roles:
Administrator
Pauser
Minter
Freezer
Upgrader
Rescuer
\-The administrator role of the TokenV1 contract can manage roles within the solution.
\-The pauser role of the TokenV1 contract can pause and unpause the solution.
\-The minter role of the TokenV1 contract can mint tokens.
\-The freezer role of the TokenV1 contract can freeze and unfreeze an account’s funds.
\-The upgraded role of the TokenV1 contract can upgrade the implementation of UUPS Proxy.
\-The rescuer role of the TokenV1 contract can withdraw ERC20 tokens sent to the contract.
Minteo utilizes multi-signature wallets to handle every privileged account.
Executive Summary
Documentation quality
The total Documentation quality score is 9 out of 10.
Functional requirements were provided.
Technical requirements were not provided.
However, mostly, code is self-documented.
Code quality
The total Code quality score is 9 out of 10.
The code inherits mostly from OpenZeppling extensions.
Code follows common best practices.
The development environment is configured.
Mostly, code is self-documented.
No NatSpec documentation provided.
Test coverage
Code coverage of the project is 100% (branch coverage).
Deployment and basic user interactions are covered with tests.
Negative cases coverage are included.
Interactions by several users are included.
The Upgradability functionality is tested as well.
Tests use Polygon fork.
Security score
Upon auditing, the code was found to contain 0 critical, 0 high, 0 medium, and 1 low severity issues. Out of these, 0 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 9.5. This score reflects the combined evaluation of documentation, code quality, test coverage, and security aspects of the project.
Risks
The TokenV1 solution is heavily centralized. Apart from the standard ERC20 functionality, every public function requires authorisation of privileged accounts. Minteo states that every account is a multi-signature wallet.
The solution owner can freeze any account’s funds.
The solution is upgradable by means of UUPS Proxy.
Findings
Code ― | Title | Status | Severity | |
|---|---|---|---|---|
| F-2023-1033 | Lack of two-step ownership transfer | unfixed | Low |
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 | |
|---|---|
| Repository | https://github.com/minteo-wagmi/rwa-contracts→ |
| Commit | 985b0f30c05f1f801030e4d06282a3c7eb111917 |
| Whitepaper | Provided |
| Requirements | Provided |
| Technical Requirements | Not provided |
Scope Details
- Commit
- 985b0f30c05f1f801030e4d06282a3c7eb111917
- Whitepaper
- Provided
- Requirements
- Provided
- Technical Requirements
- Not provided