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Audit name:

[SCA] RE.AL | RWA-Contracts | Sep2024

Date:

Sep 11, 2024

Table of Content

→Introduction
→Audit Summary
→System Overview
→Risks
→Findings
→Appendix 1. Severity Definitions
→Appendix 2. Scope
→Disclaimer

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Introduction

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

The RWA Ecosystem is a collection of smart contracts that encapsulate a collection of products built to bring a yield generating and governance protocol to active investors.

Document

NameSmart Contract Code Review and Security Analysis Report for re.al
Audited ByOlesia Bilenka
Approved ByAtaberk Yavuzer
Websitehttps://www.re.al/→
Changelog05/09/2024 - Preliminary Report
11/09/2024 - Final Report
Platformre.al
LanguageSolidity
TagsYield Farming
Methodologyhttps://hackenio.cc/sc_methodology→
  • Document

    Name
    Smart Contract Code Review and Security Analysis Report for re.al
    Audited By
    Olesia Bilenka
    Approved By
    Ataberk Yavuzer
    Changelog
    05/09/2024 - Preliminary Report
    11/09/2024 - Final Report
    Platform
    re.al
    Language
    Solidity
    Tags
    Yield Farming

Review Scope

Repositoryhttps://github.com/re-al-Foundation/rwa-contracts→
Commit84f9a90
Remediation commit5a8263c

Audit Summary

3Total Findings
1Resolved
1Accepted
1Mitigated

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

Documentation quality

  • Technical description and functional requirements are provided.

  • Natspec is provided.

Code quality

  • The code follows best practices and official language style guides.

  • The contract contains redundant functionality that could be streamlined for improved efficiency and clarity.

  • The development environment is configured.

Test coverage

Code coverage of the project is 92%.

  • Deployment and basic user interactions are covered with tests.

  • Negative cases are covered with tests.

System Overview

RWA Ecosystem is a project with the following contracts:

Deployment and basic user interactions are covered with tests. Negative cases are covered with tests.

Privileged roles

  • The revenueDistributor is allowed to deposit ETH into the contract,

  • Tthe contract owner is allowed to claim all revenue, set expiration duration for revenue, and updgrade the contract.

Risks

Scope Definition and Security Guarantees: The audit does not cover all code in the repository. Contracts outside the audit scope may introduce vulnerabilities, potentially impacting the overall security due to the interconnected nature of smart contracts.

Dependency on External Logic for Implemented Logic: The implemented depositETH and votingEscrow logic highly depends on external contracts not covered by the audit. This reliance introduces risks if these external contracts are compromised or contain vulnerabilities, affecting the audited project's integrity.

Owner's Unrestricted State Modification: The absence of restrictions on state variable modifications by the owner leads to arbitrary changes, affecting contract integrity and user trust, especially during critical operations like minting phases.

Insufficient Multi-signature Controls for Critical Functions: The lack of multi-signature requirements for key operations centralizes decision-making power, increasing vulnerability to single points of failure or malicious insider actions, potentially leading to unauthorized transactions or configuration changes.

Single Points of Failure and Control: The project is fully or partially centralized, introducing single points of failure and control. This centralization can lead to vulnerabilities in decision-making and operational processes, making the system more susceptible to targeted attacks or manipulation

Missing Domain Separator in RevenueStreamETH: in the RevenueStreamETH contract, the claimWithSignature function allows users to claim ETH by providing a signature from the signer address. However, the data used for the signature does not include the chainId or other necessary fields required for domainSeparator according to EIP-712. This omission may result in the reuse of a signature created for a different chain, contract, or project version, potentially allowing users to withdraw ETH that was not intended for them when currentIndex matches.

Inconsistent ETH Balance Due to Unchecked Withdrawals Via Signatures: the claimWithSignature function allows users to withdraw ETH from the contract without checking if the amount to withdraw is correct, this value is checked off-chain, which may lead to the contract balance no longer accurately reflecting the contract's actual ETH balance, preventing users from withdrawing their ETH.Centralization Risk In Recycling The Expired Eth

Centralization Risk In Recycling The Expired Eth: the owner withdraws an amount of ETH based on the amount parameter, rather than calculating the exact cycle revenue as defined in depositETH. This potentially enables the owner to withdraw any amount of ETH, irrespective of the intended limits.

Findings

F-2024-5768Centralization Risk In Recycling The Expired Eth
Status
mitigated
Severity

Low
F-2024-5767Redundant Functionality In the RevenueStreamETH Contract
Status
fixed
Severity

Observation
F-2024-5766Floating Pragma
Status
accepted
Severity

Observation
Code
―
Title
Status
Severity
F-2024-5768Centralization Risk In Recycling The Expired Eth
mitigated

Low
F-2024-5767Redundant Functionality In the RevenueStreamETH Contract
fixed

Observation
F-2024-5766Floating Pragma
accepted

Observation
1-3 of 3 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/re-al-Foundation/rwa-contracts→
Commit84f9a90a699dd2fbf37e78a475248eabc5e02925
Remediation commit5a8263c7b66d07df32f528ce4747ab2321e96acd
Whitepaperhttps://docs.re.al/→
RequirementsN/A
Technical RequirementsN/A

Contracts in Scope

src
RevenueStreamETH.sol - src › RevenueStreamETH.sol

Disclaimer