Revolution Protocol - unique's results

the Revolution protocol

Revolution is a set of contracts that improve on <ins>Nouns DAO</ins>. Nouns is a generative avatar collective that auctions off one ERC721, every day, forever. 100% of the proceeds of each auction (the winning bid) go into a shared treasury, and owning an NFT gets you 1 vote over the treasury.

Compared to Nouns, Revolution seeks to make governance token ownership more accessible to creators and builders, and balance the scales between culture and capital while committing to a constant governance inflation schedule.

The ultimate goal of Revolution is fair ownership distribution over a community movement where anyone can earn decision making power over the energy of the movement. If this excites you, <ins>build with us</ins>.

Audit approach

1. Read the README.md

2. Try to understand how the system works

3. Look at the  <ins>Nouns DAO</ins>   repo to get a better idea of the Revolution protocol.

4. Look at each code individually.

5. Write a Report by compiling all the insights I gained throughout the line-by-line code review.

Contracts

1. MaxHeap.sol

• Functionality:

  • Implements a max-heap data structure with standard operations like insertion, updating values, and extracting the maximum element.
  • Designed to be upgradeable using the UUPS pattern.
  • Utilizes OpenZeppelin's Ownable2StepUpgradeable and ReentrancyGuardUpgradeable for ownership and reentrancy protection.

• Security Considerations:

  • Implements various OpenZeppelin contracts for security.
  • Uses Ownable2StepUpgradeable for ownership control with a two-step process.
  • Implements reentrancy protection with ReentrancyGuardUpgradeable.
  • The _authorizeUpgrade function ensures that only the owner can authorize an upgrade.

• Initialization and Upgradeability:

  • The constructor is marked as payable and initializer, which is unconventional and should be reviewed for correctness.
  • The initialize function sets up the contract state for upgradeable functionality, but it should be protected to ensure it's called only once.
  • Uses the UUPS pattern for upgradeability with version management.

• Heap Operations:

  • Implements standard heap operations such as insertion, updating values, and extracting the maximum element.
  • The maxHeapify function assumes the existence of left and right child nodes without proper bounds checking, posing a risk of out-of-bounds access.

• Access Controls:

  • The onlyAdmin modifier is used for functions like insert, updateValue, and extractMax, which might be intentional for separation of roles. However, this means that the owner does not have direct control over these operations unless they are also the admin.

• Potential Flaws and Improvements:

  • The constructor being marked as initializer could be unconventional and should be carefully reviewed for correctness.
  • The maxHeapify function should include bounds checking for left and right child nodes to prevent out-of-bounds access.
  • Consider implementing functions to remove or decrease the value of an item in the heap for a more complete heap implementation.
  • The contract does not limit the size of the heap, which might be a concern for potential out-of-gas errors.

• Overall Impression:

  • A well-structured contract for managing a max-heap data structure with upgradeability and security features. Pay attention to initialization, access controls, and bounds checking for secure heap operations.

2. CultureIndex.sol

• Functionality:

  • Manages a decentralized voting system for art pieces using ERC20 and ERC721 tokens.
  • Supports gasless voting through signatures.
  • Allows the creation and voting on art pieces.
  • Enables the dropping of the top-voted piece based on quorum votes.

• Security Considerations:

  • Implements various OpenZeppelin contracts for security.
  • Uses ReentrancyGuardUpgradeable to prevent reentrancy attacks.
  • Ensures ownership control with Ownable2StepUpgradeable.
  • Includes measures against replay attacks in gasless voting.
  • Requires careful auditing for potential overflow/underflow issues.

• Overall Impression:

  • A complex contract with significant external interactions and voting mechanisms. Security auditing is crucial.

3. NontransferableERC20Votes.sol

• Functionality:

  • Extends ERC-20 with voting and delegation features.
  • Tokens are nontransferable.
  • Uses OpenZeppelin contracts for upgradeability and ERC-20 functionality.

• Security Considerations:

  • Restricts token transferability intentionally.
  • Allows the owner to mint new tokens, requiring careful management.
  • Assumes the manager address is secure and trustworthy.

• Overall Impression:

  • Tailored for a specific use case where token transferability is intentionally restricted. Requires trust in the manager.

4. ERC20TokenEmitter.sol

• Functionality:

  • Handles minting and purchasing of a non-transferable ERC20 token.
  • Utilizes a Variable Rate Gradual Dutch Auction Contract (VRGDAC) for pricing.
  • Implements pausability and various upgradeable patterns.

• Security Considerations:

  • Implements reentrancy protection with ReentrancyGuardUpgradeable.
  • Provides a pausability mechanism for emergency stops.
  • Uses the UUPS pattern for upgradeability.
  • Requires careful management of the manager and auditing of external contract interactions.

• Overall Impression:

  • Well-structured contract for handling token emission with a Dutch auction. Security audits are crucial.

5. AuctionHouse.sol

• Functionality:

  • Manages auctions for ERC721 tokens ("Verbs").
  • Allows creating, bidding, settling auctions, and handling payments.
  • Implements pausability and upgradeability patterns.

• Security Considerations:

  • Implements pausability for emergency stops.
  • Uses the UUPS pattern for upgradeability.
  • Requires thorough auditing for security, especially in handling payments and external contract interactions.

• Overall Impression:

  • Aims to provide a comprehensive auction system for ERC721 tokens. Requires careful auditing of payment and interaction mechanisms.

6. VerbsToken.sol

• Functionality:

  • ERC-721 token with upgradeability and additional features.
  • Relies on external contracts (descriptor, cultureIndex) for certain functionalities.

• Security Considerations:

  • Requires trust in external contracts (descriptor, cultureIndex).
  • Implements various security patterns like reentrancy guards and upgradeability checks.

• Overall Impression:

  • Designed to work with external contracts. Requires thorough security audits.

7. VRGDAC.sol

• Functionality:

  • Implements a Continuous Variable Rate Gradual Dutch Auction (VRGDA) for token sales.
  • Handles variable-rate pricing based on time and tokens sold.

• Security Considerations:

  • Utilizes an external library (SignedWadMath.sol) for mathematical operations.
  • Requires careful validation of inputs to prevent potential exploits.

• Overall Impression:

  • Focuses on providing a Dutch auction mechanism. External library and input validation are critical for security.

8. TokenEmitterRewards.sol

• Functionality:

  • Abstract contract handling reward splitting logic.
  • Part of a larger system with an unknown context.

• Security Considerations:

  • Potential risk if reentrancy issues exist in the derived contracts.
  • Requires an understanding of the entire system for a comprehensive security analysis.

• Overall Impression:

  • An abstract contract focused on reward splitting. Security depends on the context in which it is implemented.

9. RewardSplits.sol

• Functionality:

  • Abstract contract for distributing rewards based on a payment amount.
  • Calculates rewards for different roles.

• Security Considerations:

  • Potential rounding errors need attention.
  • Requires careful handling of external contract interactions and input validation.
  • Centralized fallback to revolutionRewardRecipient needs consideration.

• Overall Impression:

  • Focused on reward distribution. Attention needed to rounding errors, external contract interactions, and input validation.

In general, the provided codebase quality across the analyzed smart contracts is relatively high. Here are some key observations:

 

codebase quality

1. Common Strengths:

   • Contracts generally follow best practices in terms of upgradeability, with the use of the UUPS pattern.
   • Security features such as reentrancy protection, access controls, and error handling are incorporated.
   • Comprehensive functionality and clear contract structures are evident in most contracts.

2. Areas of Improvement:

   • Some contracts could benefit from enhanced comments and explanations in certain areas.
   • The use of external libraries and potential rounding errors require careful consideration and auditing.
   • Attention to gas optimization and unconventional practices in a few contracts may need refinement.

3. Security Considerations:

   • Security is addressed across contracts with features like reentrancy protection, access controls, and error handling.
   • Dependency on external libraries introduces considerations for thorough library audits.
   • The quality of security practices is generally high, but continuous review and testing are essential.

4. Functionality:

   • Contracts provide a range of functionalities, including token management, auctions, reward distribution, and data structures.
   • Comprehensive functionality is coupled with thoughtful security considerations.

5. Upgradeability:

   • The use of upgradeability patterns (UUPS) is consistent, allowing for contract updates without changing addresses.
   • Contracts are designed with version management, providing flexibility for future enhancements.

6. Overall:

   • The codebase quality is solid, showcasing good development practices.
   • Attention to potential improvements and security considerations reflects a thoughtful approach.
   • Continuous testing, auditing, and monitoring are essential to ensure ongoing robustness

Architecture Recommendation

some general architecture recommendations

Documentation:

1. • Maintain thorough and well-commented documentation for each contract, explaining the purpose, functions, and any potential security considerations.
   • Clearly document the interfaces and dependencies with external contracts or libraries.

2. Security Audits:

   • Conduct thorough security audits for each contract, especially those that handle critical functions such as token management, auctions, and reward distribution.
   • Pay particular attention to external dependencies and ensure that libraries used in the contracts are secure.

3. Testing:

   • Implement a comprehensive testing suite, including unit tests, integration tests, and scenario-based tests to ensure the correctness of contract functionality.
   • Perform extensive testing under different scenarios to identify and address potential edge cases.

4. Upgradeability:

   • Continue following the upgradeability pattern (UUPS) for contracts that may need future updates. Ensure that the upgrade process is well-defined and secure.
   • Consider implementing a mechanism for contract retirement or deprecation if necessary.

5. Gas Optimization:

   • Review and optimize gas usage in critical functions, especially in contracts that may be frequently interacted with, such as those handling auctions or token transactions.
   • Consider gas-efficient coding practices and optimizations where applicable.

6. Access Controls:

   • Ensure that access controls are appropriately implemented and consider using OpenZeppelin's roles or other established access control patterns.
   • Clearly define and document roles such as owner, admin, or manager for each contract.

7. Event Emission:

   • Continue emitting events for critical state changes to facilitate transparency and off-chain monitoring.
   • Ensure that event data is comprehensive and useful for users or external systems.

8. External Dependencies:

   • Regularly review and monitor external dependencies, such as libraries oracles, and upgrade them if necessary to address potential vulnerabilities.

9. Continuous Monitoring:

   • Implement continuous monitoring mechanisms, both on-chain and off-chain, to detect any irregularities or potential security threats.

10. Community Engagement:

    • Consider engaging with the developer community and conducting bug bounty programs to encourage external reviews and identify potential vulnerabilities.

11. Scalability:

    • Assess the scalability of contracts, especially those involved in high-frequency operations, and consider optimizations or layer-2 solutions if needed.

12. Regulatory Compliance:

    • Stay informed about regulatory requirements and ensure that the smart contracts comply with relevant regulations.

Time Spent 

19 hours

Time spent:

17 hours