Audit name:
[SCA] RWA / RWAIncToken / Nov2024
Date:
Nov 29, 2024
Table of Content
Introduction
We express our gratitude to the RWA.Inc team for the collaborative engagement that enabled the execution of this Smart Contract Security Assessment.
RWAIncToken is an ERC20-compatible token based on LayerZero's OFT standard, designed for cross-chain operability.
Document | |
|---|---|
| Name | Smart Contract Code Review and Security Analysis Report for RWA.Inc |
| Audited By | Przemyslaw Swiatowiec |
| Approved By | Ataberk Yavuzer |
| Website | https://www.rwa.inc/→ |
| Changelog | 15/11/2024 - Preliminary Report |
| 15/11/2024 - FInal Report | |
| Platform | Base |
| Language | Solidity |
| Tags | ERC20, LayerZero, RWA |
| Methodology | https://hackenio.cc/sc_methodology→ |
Document
- Name
- Smart Contract Code Review and Security Analysis Report for RWA.Inc
- Audited By
- Przemyslaw Swiatowiec
- Approved By
- Ataberk Yavuzer
- Website
- https://www.rwa.inc/→
- Changelog
- 15/11/2024 - Preliminary Report
- 15/11/2024 - FInal Report
- Platform
- Base
- Language
- Solidity
- Tags
- ERC20, LayerZero, RWA
- Methodology
- https://hackenio.cc/sc_methodology→
Review Scope | |
|---|---|
| Repository | https://github.com/RWA-Inc/rwa-smart-contracts→ |
| Commit | 5beadbf741adf753a0295e24059a53de7f980f97 |
Review Scope
- Commit
- 5beadbf741adf753a0295e24059a53de7f980f97
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
No code quality issues were found.
Test coverage
Code coverage of the project is 0%.
System Overview
RWAIncToken is an ERC20-compatible token based on LayerZero's OFT standard, designed for cross-chain operability. The token has a supply cap of 1B tokens and 18 decimals. It features initial minting of all 1 billion tokens and when deployed on Base Mainnet (chaind=8453) or Base Testnet (chaind=84532) and integrates ownership management using OpenZeppelin's Ownable. The contract enables cross-chain token transfers through LayerZero infrastructure.
Privileged roles
Owner:
Receives the initial token allocation upon deployment.
Delegate:
Specified during deployment, the role handles operational tasks as part of the LayerZero integration.
Potential Risks
The reliance on LayerZero's infrastructure introduces potential external dependencies, such as service availability or security, which are outside the scope of this audit and assumed to be secure and reliable.
Findings
Code ― | Title | Status | Severity | |
|---|---|---|---|---|
| F-2024-7203 | Floating Pragma | fixed | Observation |
Identify 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/RWA-Inc/rwa-smart-contracts→ |
| Initial Review Commit | 5beadbf741adf753a0295e24059a53de7f980f97 |
| Secondary Review Commit | cba3bc29317c1ea1bd6b04f073ac336d52a29566 |
| Whitepaper | - |
| Requirements | Provided in NATSpec |
| Technical Requirements | Provided in NATSpec |
Scope Details
- Initial Review Commit
- 5beadbf741adf753a0295e24059a53de7f980f97
- Secondary Review Commit
- cba3bc29317c1ea1bd6b04f073ac336d52a29566
- Whitepaper
- -
- Requirements
- Provided in NATSpec
- Technical Requirements
- Provided in NATSpec
Assets in Scope
RWAIncToken.sol Appendix 3. Additional Valuables
Additional Recommendations
The smart contracts in the scope of this audit could benefit from the introduction of automatic emergency actions for critical activities, such as unauthorized operations like ownership changes or proxy upgrades, as well as unexpected fund manipulations, including large withdrawals or minting events. Adding such mechanisms would enable the protocol to react automatically to unusual activity, ensuring that the contract remains secure and functions as intended.
To improve functionality, these emergency actions could be designed to trigger under specific conditions, such as:
Detecting changes to ownership or critical permissions.
Monitoring large or unexpected transactions and minting events.
Pausing operations when irregularities are identified.
These enhancements would provide an added layer of security, making the contract more robust and better equipped to handle unexpected situations while maintaining smooth operations.