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  • [SCA] Zero1 Labs / ERC20 / Mar2024
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Parallax

Audit name:

[SCA] Zero1 Labs / ERC20 / Mar2024

Date:

Apr 3, 2024

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

The DEAI smart contract is designed for the issuance and management of the "Zero1 Token" (DEAI), a digital asset on the Ethereum blockchain. Leveraging OpenZeppelin's upgradeable contracts, DEAI provides a scalable and secure framework for token minting, burning, and rescue operations, ensuring long-term operational flexibility and safety

titlecontent
PlatformEVM
LanguageSolidity
TagsERC-20 Upgradable
Timeline19/03/2024 - 21/03/2024
Methodologyhttps://hackenio.cc/sc_methodology→

    Review Scope

    Repositoryhttps://gitlab.com/hacken-audit-contracts/zero1-token-deai→
    Commit3da461f

    Audit Summary

    Total10/10
    Security Score

    10/10

    Test Coverage

    100%

    Code Quality Score

    10/10

    Documentation Quality Score

    10/10

    2Total Findings
    2Resolved
    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 Parallax
    Audited ByGiovanni Franchi
    Approved ByYves Toiser
    Websitehttps://z1labs.ai/→
    Changelog21/03/2024 - Preliminary Report && 21/03/2024 - Final Report

    • Document

      Name
      Smart Contract Code Review and Security Analysis Report for Parallax
      Audited By
      Giovanni Franchi
      Approved By
      Yves Toiser
      Website
      https://z1labs.ai/→
      Changelog
      21/03/2024 - Preliminary Report && 21/03/2024 - Final Report

    System Overview

    Zero1 Labs is an upgradable ERC-20 composed by the following contracts:

    DEAI  — Upgradable ERC-20 token that mints all initial supply to the default admin.  Additional minting is not allowed. The contract enables burning functionalities restricted to a burning role and capability to rescue tokens accidentally sent to the contract.

    It has the following attributes:

    • Name: Zero1 Token

    • Symbol: DEAI

    • Decimals: 18

    • Total supply: 1 billion.

    TokensRescuer - Abstract utility contract that enables rescuing tokens accidentally sent to the contract.

    CheckerZeroAddr - Abstract utility contract that serves the purpose of offering a modifier for zero addresses checks.

    Privileged roles

    • The default admin of the contract can arbitrarily mint to itself the total supply of tokens. This operation can only occur once.

    • The default admin of the contract  can arbitrarily assign and revoke burning roles.

    • The burning role can arbitrarily burn tokens from its own balance.

    Executive Summary

    Documentation quality

    The total Documentation Quality score is 10 out of 10.

    • Functional requirements are provided.

    • Technical description is provided.

    Code quality

    The total Code Quality score is 10 out of 10.

    • The code presents robust NatSpecs.

    • The code adheres to best practises.

    Test coverage

    Code coverage of the project is 100% (branch coverage).

    • Test coverage is not required below 250 lines of code.

    Security score

    Upon auditing, the code was found to contain 1 critical, 0 high, 0 medium, and 0 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.

    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

    Upgradeable contracts typically rely on an upgrade mechanism controlled by one or more addresses, introducing centralization and potentially creating single points of failure or trust.

    Findings

    Code
    ―
    Title
    Status
    Severity
    F-2024-1600Invalid type for argument in function call
    fixed

    Critical
    F-2024-1604Absence of Initialization Lock in Upgradeable Contract
    fixed

    Observation
    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://gitlab.com/hacken-audit-contracts/zero1-token-deai→
    Commit3da461f07af1d3939c188c7f6dc0b331f5faf6c8
    WhitepaperN/A
    Requirements./contracts/DEAI doc.pdf
    Technical Requirements./contracts/DEAI doc.pdf

    Remediation Scope Details

    Repositoryhttps://gitlab.com/hacken-audit-contracts/zero1-token-deai→
    Commit1e5edfe84c553632aacc6e2c7dc079353eeefc9f
    WhitepaperN/A
    Requirements./contracts/DEAI doc.pdf
    Technical Requirements./contracts/DEAI doc.pdf

    Contracts in Scope

    contracts
    DEAI.sol - contracts/DEAI.sol
    extensions
    CheckerZeroAddr.sol - contracts/extensions/CheckerZeroAddr.sol
    TokensRescuer.sol - contracts/extensions/TokensRescuer.sol
    interfaces
    ITokensRescuer.sol - contracts/interfaces/ITokensRescuer.sol

    Disclaimer