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  • [SCA] Yellow Network / ERC20 / Mar2023

Openware (Yellow Network)

Audit name:

[SCA] Yellow Network / ERC20 / Mar2023

Date:

Mar 3, 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 Openware (Yellow Network) team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.

Yellow Network is a Layer-3 peer-to-peer network that uses state channels technology to scale and facilitate trading, clearing and settlement. The core technology is called ClearSync.

titlecontent
PlatformEthereum, Solana, Polkadot, Avalanche, Other
LanguageSolidity
TagsERC20
Timeline15/02/2023 - 02/03/2023
Methodologyhttps://hackenio.cc/sc_methodology→

    Review Scope

    Repositoryhttps://github.com/layer-3/clearsync→
    Commit5b86a2134d295ac11af97d4f239782222e95fe24

    Audit Summary

    Total10/10
    Security Score

    10/10

    Test Coverage

    95.83%

    Code Quality Score

    10/10

    Documentation Quality Score

    10/10

    2Total Findings
    0Resolved
    0Accepted
    1Mitigated

    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 Openware (Yellow Network)
    Audited ByHacken
    Changelog22/02/2023 – Initial Review
    02/03/2023 - Second Review

    • Document

      Name
      Smart Contract Code Review and Security Analysis Report for Openware (Yellow Network)
      Audited By
      Hacken
      Changelog
      22/02/2023 – Initial Review
      02/03/2023 - Second Review

    System Overview

    YellowNetwork is a simple system with the following contracts:

    • Token — simple ERC-20 token that allows mint, transfer and burn tokens with addition of blacklist. Addresses on blacklist cannot transfer tokens. While deploying contract developer needs to provide following attributes: \-Name: token name. \-Symbol: token symbol. \-Supply Cap: minting over cap is not allowed. Contract uses roles to restrict access to important functions.

    • IBlacklist — an interface that contains functions and events for blacklisting mechanisms.

    Privileged roles

    • DEFAULTADMINROLE - address with that role can activate minting tokens.

    • COMPLIANCE_ROLE - address with that role can add and remove given address from blacklist. Additionally, that role allows to burn all tokens from blacklisted addresses.

    • MINTER_ROLE - address with that role can mint new tokens.

    Executive Summary

    Documentation quality

    The total Documentation quality score is 10 out of 10.

    • Business logic is provided.

    • Use cases are provided.

    • Whitepaper is provided.

    • Functional requirements are provided..

    Code quality

    The total Code quality score is 10 out of 10.

    • NatSpec is present.

    • Code follows Solidity style guidelines.

    Test coverage

    Code coverage of the project is 95.83% (branch coverage).

    Security score

    Upon auditing, the code was found to contain 0 critical, 1 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 10. This score reflects the combined evaluation of documentation, code quality, test coverage, and security aspects of the project.

    Risks

    An account with the COMPLIANCE_ROLE can blacklist and then an account with DEFAULT_ADMIN_ROLE can burn tokens of any account without allowance. Tokens can be burned from contracts such as LPs.

    The repository contains contracts that are out of the audit scope. Secureness and reliability of those contracts may not be guaranteed by the current audit.

    Findings

    Code
    ―
    Title
    Status
    Severity
    F-2023-1091Highly Permissive Role Access
    mitigated

    High
    F-2023-109Redundant View Functions
    unfixed

    Low
    1-2 of 2 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/layer-3/clearsync→
    Commit5b86a2134d295ac11af97d4f239782222e95fe24
    WhitepaperProvided→
    RequirementsProvided→
    Technical RequirementsProvided→

    Contracts in Scope

    contracts
    Token.sol - contracts/Token.sol
    interfaces
    IBlacklist.sol - contracts/interfaces/IBlacklist.sol

    Disclaimer