Audit name:
[SCA] Paycheck / Check Token / Dec2024
Date:
Jan 2, 2025
Table of Content
Introduction
We express our gratitude to the Paycheck Labs team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.
Paycheck is a platform that integrates blockchain and AI to offer financial solutions. One of its key features is the issuance of $CHECK token, enabling NFT checks.
Document | |
|---|---|
| Name | Smart Contract Code Review and Security Analysis Report for Paycheck Labs |
| Audited By | Adam Idarrha |
| Approved By | Oleksii Haponiuk |
| Website | https://paycheck.io/→ |
| Changelog | 30/12/2024 - Preliminary Report, 02/01/2025 - Final Report |
| Platform | Polygon |
| Language | Solidity |
| Tags | Fungible Token, Permit Token |
| Methodology | https://hackenio.cc/sc_methodology→ |
Document
- Name
- Smart Contract Code Review and Security Analysis Report for Paycheck Labs
- Audited By
- Adam Idarrha
- Approved By
- Oleksii Haponiuk
- Website
- https://paycheck.io/→
- Changelog
- 30/12/2024 - Preliminary Report, 02/01/2025 - Final Report
- Platform
- Polygon
- Language
- Solidity
- Tags
- Fungible Token, Permit Token
- Methodology
- https://hackenio.cc/sc_methodology→
Review Scope | |
|---|---|
| Repository | https://github.com/PaycheckLabs/contracts→ |
| Commit | 4b8ed98 |
Review Scope
- Commit
- 4b8ed98
Audit Summary
The system users should acknowledge all the risks summed up in the risks section of the report
Documentation quality
Functional requirements are provided.
Technical description is provided.
Code quality
The code mostly conforms with the Solidity Style Guide.
The development environment is configured.
Test coverage
Code coverage of the project is 100% (branch coverage).
Deployment and basic user interactions are covered with tests.
System Overview
Check Token — simple ERC-20 token that mints all initial supply to a deployer. It features burnable capabilities and permit functionality, with no option for additional minting.
It has the following attributes:
Name: Check Token
Symbol: CHECK
Decimals: 18
Total supply: 100 billion tokens.
Potential Risks
The contract mints the entire token supply to the deployer upon deployment, creating a significant centralization risk. This concentration of tokens in a single address gives the deployer disproportionate control over the token's distribution and potentially the protocol's governance. However, according to the Paycheck team, this approach is part of the token migration process and is managed using a multi-signature wallet, mitigating concerns about long-term centralization.
Findings
No vulnerabilities were foundIdentify vulnerabilities in your smart contracts.
Appendix 1. Definitions
Severities
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. |
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.
Potential Risks
The "Potential Risks" section identifies issues that are not direct security vulnerabilities but could still affect the project’s performance, reliability, or user trust. These risks arise from design choices, architectural decisions, or operational practices that, while not immediately exploitable, may lead to problems under certain conditions. Additionally, potential risks can impact the quality of the audit itself, as they may involve external factors or components beyond the scope of the audit, leading to incomplete assessments or oversight of key areas. This section aims to provide a broader perspective on factors that could affect the project's long-term security, functionality, and the comprehensiveness of the audit findings.
Appendix 2. Scope
The scope of the project includes the following smart contracts from the provided repository:
Scope Details | |
|---|---|
| Repository | https://github.com/PaycheckLabs/contracts/→ |
| Commit | 4b8ed98736ce7b83db9a570f747d326fa2688a6e |
| Whitepaper | |
| Requirements | |
| Technical Requirements |
Scope Details
- Commit
- 4b8ed98736ce7b83db9a570f747d326fa2688a6e
- Whitepaper
- Requirements
- Technical Requirements
Assets in Scope
CheckToken.sol