AI Arena - JayShreeRAM's results

In AI Arena you train an AI character to battle in a platform fighting game. Imagine a cross between Pokémon and Super Smash Bros, but the characters are AIs, and you can train them to learn almost any skill in preparation for battle.

General Information

Platform: Code4rena

Start Date: 09/02/2024

Pot Size: $60,500 USDC

Total HM: 17

Participants: 283

Period: 12 days

Judge:

Id: 328

League: ETH

AI Arena

Findings Distribution

Researcher Performance

Rank: 129/283

Findings: 1

Award: $20.07

🌟 Selected for report: 0

🚀 Solo Findings: 0

AI Arena Advanced Analysis Report

Introduction

AI Arena is a novel platform fighting game where players train AI characters to battle each other. Inspired by Pokémon and Super Smash Bros., it offers a unique twist by allowing players to train their AI fighters to develop various skills through machine learning. This report provides an in-depth analysis of AI Arena, delving into its gameplay mechanics, tokenomics,

Scope Contracts

1 . AiArenaHelper.sol 2 . FighterFarm.sol 3 . FighterOps.sol 4 . GameItems.sol 5 . MergingPool.sol 6 . Neuron.sol 7 . RankedBattle.sol 8 . StakeAtRisk.sol 9 . VoltageManager.sol

Gameplay Mechanics

1 . NFT-based Fighter Ownership Players own their AI characters as Fighter NFTs, allowing for trading, breeding, and potentially other functionalities.

Review points

  • Benefits: Enables player ownership, customization, and potential value appreciation of fighters.
  • Risks: Breeding mechanics could lead to inflation or homogenization of fighter traits, impacting gameplay balance.

2. Off-chain AI Training Players train their AI characters through an off-chain process, potentially using dedicated software or platforms.

Review points

  • Benefits: Allows for complex AI training algorithms and potentially faster training times compared to on-chain solutions.
  • Risks: Introduces centralization as the game operator controls the training process, raising concerns about transparency and potential manipulation.

3. Ranked Battles and Staking Players participate in ranked battles, staking $NRN tokens for potential rewards based on their performance and stake size.

Review points

  • Benefits: Encourages competitive gameplay and incentivizes participation through token rewards.
  • Risks: High staking requirements could create barriers to entry for new players, and imbalanced rewards might favor whales.

4. Voltage System Limits daily ranked battle attempts through a "voltage" system, requiring players to use batteries or wait for natural regeneration to participate further.

Review points

  • Benefits: Encourages strategic resource management and potentially discourages excessive grinding.
  • Risks: Introduces an element of pay-to-win if batteries are readily purchasable, potentially hindering fair competition.

Tokenomics Analysis

Native Token: The game likely utilizes a native token ($NRN) .

Earning Mechanisms: Players can earn $NRN by:

  • Staking: Staking their characters and winning ranked battles (StakeAtRisk contract).
  • Purchasing: Potentially through an external marketplace (not included in provided contracts).

Spending Mechanisms Players can spend $NRN on:

  • In-game purchases: Potentially for items or character enhancements (GameItems contract).
  • Replenishing voltage: Used for participating in ranked battles (VoltageManager contract).

Contracts Overview

1. AiArenaHelper.sol

*Overview Provides helper functions for various game mechanics, including calculating rewards and penalties, handling voltage consumption, and potentially other utility functions.

Key functionalities

  • Reward/penalty calculations based on win/loss, performance, and stake size.
  • Voltage management functions (consumption, tracking, potential regeneration).
  • Additional helper functions as needed for specific game mechanics.

2. FighterFarm.sol

Overview Manages the lifecycle of Fighter NFTs, including minting, breeding, and facilitating trading on a marketplace.

Key functionalities

  • Minting new fighters with randomized attributes.
  • Breeding existing fighters to create offspring with combined traits.
  • Implementing functionalities for trading Fighter NFTs on a designated marketplace.
  • Tracking ownership and lineage of Fighter NFTs.

3. FighterOps.sol

Overview Handles actions related to AI training and battle participation.

Key functionalities

  • Interface for interacting with the off-chain training system (initiating, managing training).
  • Registering fighters for ranked battles.
  • Executing battles and determining outcomes based on AI capabilities (potentially interacting with an off-chain battle simulator).

4. GameItems.sol

Overview Manages various in-game items that can enhance gameplay or provide cosmetic customization.

Key functionalities

  • Minting, burning, and transferring different types of items (e.g., batteries, cosmetic items).
  • Defining item attributes and effects on gameplay or aesthetics.
  • Tracking item ownership and usage.

5. MergingPool.sol

Overview Facilitates the merging of Fighter NFTs for potential stat enhancements.

Key functionalities

  • Allowing players to combine multiple fighters with a chance of inheriting desirable traits.
  • Implementing mechanics for successful merges, determining success probabilities, and handling resource costs.
  • Tracking merged fighter attributes and lineage.

6. Neuron.sol

Overview Represents the core data structure for AI characters, storing their learned skills and attributes.

Key functionalities

  • Defining data structures for storing AI skills and attributes.
  • Implementing mechanisms for updating and evolving AI capabilities through training.

7. RankedBattle.sol

Overview Governs ranked battles, including matchmaking, staking, and reward distribution.

Key functionalities

  • Matchmaking players based on ranking or other criteria.
  • Handling staking of $NRN tokens for participation and potential rewards.
  • Distributing rewards based on battle outcomes, stake amounts, and potentially other factors.

8. StakeAtRisk.sol

Overview Manages the staking process for ranked battles and associated risks.

Key functionalities

  • Allowing players to stake $NRN tokens to increase potential rewards.
  • Defining penalties for losing battles, potentially including a portion of the stake.
  • Implementing functionalities for staking and unstaking tokens with associated costs.

9. VoltageManager.sol

Overview Controls the "voltage" system, limiting daily ranked battle attempts and allowing for battery usage.

Key functionalities

  • Tracking voltage levels and managing daily limits for ranked battles.
  • Enabling battery usage to recover voltage and participate in additional battles.
  • Defining functionalities for acquiring and using batteries.

Economic Model Analysis

Token Utility

  • $NRN: Used for staking in ranked battles, purchasing in-game items, and potentially future governance.

Reward System

  • Players earn $NRN based on their performance in ranked battles, with losers potentially losing a portion of their stake.

Monetization

  • Initial NFT sale
  • Secondary market fees for NFT trading
  • In-game item purchases

Approach Taken While Reviewing the Codebase

  • Each contract was reviewed for its intended functionality, security, and potential vulnerabilities using static analysis tools and manual code review.
  • Available documentation, including the README file and whitepaper, was analyzed to understand the project's goals, design choices, and economic model.
  • Comparisons were drawn with similar play-to-earn games to identify potential strengths, weaknesses, and industry best practices.

Strengths and Weaknesses

Strengths
  • Unique concept with innovative mechanics like the "voltage" system and AI training.
  • Play-to-earn model incentivizes participation and potentially fosters a community.
  • NFT ownership adds a layer of collectability and potential value.
Weaknesses
  • Reliance on off-chain game logic for core mechanics introduces centralization risks and potential lack of transparency.
  • Economic model sustainability relies heavily on maintaining a healthy balance between $NRN token supply and demand.
  • Potential for pay-to-win mechanics if certain items or strategies provide significant advantages.

Risk Analysis

1 . Technical Risks

  • Smart contract vulnerabilities: Exploits could lead to loss of funds or unintended consequences.
  • AI training issues: Unforeseen biases or unexpected behaviors in AI fighters could disrupt gameplay.
  • Integration challenges: Potential issues with integrating various smart contracts seamlessly.

2 . Market Risks

  • Token price volatility: $NRN price fluctuations could impact player earnings and overall project sustainability.
  • NFT market saturation: Overabundance of fighters could decrease their value.

3 . Centralization and Systematic Risks

The core game logic, including AI training and battle execution, relies on off-chain servers. This introduces a degree of centralization, as the game operator controls these aspects. Potential risks include

  • The operator could potentially manipulate game mechanics or outcomes to favor certain players or outcomes.
  • Lack of transparency into the off-chain processes can raise concerns about fairness and predictability.

The project might rely on oracles to feed battle results on-chain. If the oracle system is compromised, it could lead to

  • Inaccurate battle results reflected on-chain, potentially impacting rewards and rankings.
  • Malicious actors could exploit vulnerabilities in the oracle system to influence outcomes.

Codebase Quality Analysis

  • The codebase appears well-structured and adheres to common Solidity coding standards. However, further analysis is recommended to identify potential areas for improvement.
  • While a thorough security audit is beyond the scope of this report, potential vulnerabilities should be identified and addressed through professional audits.
  • The code could benefit from improved commenting and modularization to enhance readability and maintainability for future developers.

Learning and Insights from this Codebase Review

  • The project leverages innovative concepts like the "voltage" system and AI training mechanics.
  • The economic model relies heavily on $NRN token utility and maintaining a balanced in-game economy.
  • Centralization risks associated with off-chain game logic require careful consideration and potential mitigation strategies.

Architectural Recommendations

  • Investigate the feasibility of implementing core gameplay mechanics like AI training and battle execution on-chain, potentially utilizing verifiable random functions and decentralized oracles.
  • Enhance transparency by providing detailed documentation of off-chain processes and consider undergoing regular security audits by reputable firms.
  • Explore the possibility of implementing decentralized governance mechanisms using $NRN tokens to allow the community to participate in decision-making processes.
  • Optimizing the neural network training process to reduce gas costs and improve efficiency.
  • Implementing additional security measures, such as oracle integration, to mitigate potential exploits.
  • Improving the platform's user interface and user experience to attract more users.
  • Implementing additional features, such as cross-platform compatibility and mobile support.
  • Conducting regular audits and security assessments to identify and address potential vulnerabilities.

Conclusion

AI Arena presents a unique concept with intriguing gameplay mechanics and an economic model built around $NRN token utility. However, addressing centralization risks, ensuring codebase security, and fostering a sustainable in-game economy are crucial for the project's long-term success. By implementing the recommendations outlined in this report, the developers can create a more robust and transparent platform for players to enjoy.

Time spent:

25 hours

#0 - c4-pre-sort

2024-02-25T20:38:35Z

raymondfam marked the issue as sufficient quality report

#1 - c4-judge

2024-03-19T08:05:02Z

HickupHH3 marked the issue as grade-b

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