Liquidity Protocol anchored by Native Stablecoin with Slip-Based Fees AMM, IL protection and Synthetics.
Platform: Code4rena
Start Date: 21/12/2021
End Date: 25/12/2021
Period: 5 days
Status: Completed
Pot Size: $30,000 USDC
Participants: 20
Reporter: liveactionllama
Judge: Jack the Pug
Id: 70
League: ETH
Auditor per page
Vader is a new form of liquidity protocol that seeks to be self-serving. It uses its own liquidity and awareness of asset purchasing power to support the creation of a collateralized stablecoin. It also is capable of using liquidity units as collateral for synthetic assets, of which it will always have guaranteed redemption liquidity for. It has a fair and transparent incentive strategy to maximise the depth of liquidity pools and adoption of synthetic assets. It uses a liquidity-sensitive fee to ensure safe and sustainable creation of debt, which can increase the capital efficiency of the system.
The following are the key features of Vader Protocol:
. ├── dex │ ├── math │ │ └── VaderMath.sol │ ├── pool │ │ ├── BasePool.sol │ │ ├── VaderPoolFactory.sol │ │ └── VaderPool.sol │ ├── queue │ │ └── SwapQueue.sol │ ├── router │ │ └── VaderRouter.sol │ └── utils │ └── GasThrottle.sol ├── dex-v2 │ ├── pool │ │ ├── BasePoolV2.sol │ │ └── VaderPoolV2.sol │ ├── router │ │ └── VaderRouterV2.sol │ ├── synths │ │ ├── SynthFactory.sol │ │ └── Synth.sol │ └── wrapper │ ├── LPToken.sol │ └── LPWrapper.sol ├── external │ ├── interfaces │ │ └── AggregatorV3Interface.sol │ ├── libraries │ │ ├── Babylonian.sol │ │ ├── BitMath.sol │ │ ├── FixedPoint.sol │ │ ├── FullMath.sol │ │ ├── TransferHelper.sol │ │ ├── UniswapMath.sol │ │ ├── UniswapV2Library.sol │ │ ├── UniswapV2OracleLibrary.sol │ │ └── UQ112x112.sol │ ├── UniswapV2ERC20.sol │ └── UniswapV2Pair.sol ├── governance │ ├── GovernorAlpha.sol │ └── Timelock.sol ├── interfaces │ ├── dex │ │ ├── pool │ │ │ ├── IBasePool.sol │ │ │ ├── IVaderPoolFactory.sol │ │ │ └── IVaderPool.sol │ │ ├── queue │ │ │ ├── IGasQueue.sol │ │ │ └── ISwapQueue.sol │ │ └── router │ │ └── IVaderRouter.sol │ ├── dex-v2 │ │ ├── pool │ │ │ ├── IBasePoolV2.sol │ │ │ ├── IVaderPoolFactoryV2.sol │ │ │ └── IVaderPoolV2.sol │ │ ├── router │ │ │ └── IVaderRouterV2.sol │ │ ├── synth │ │ │ ├── ISynthFactory.sol │ │ │ └── ISynth.sol │ │ └── wrapper │ │ ├── ILPToken.sol │ │ └── ILPWrapper.sol │ ├── external │ │ ├── chainlink │ │ │ ├── IAggregator.sol │ │ │ └── IAggregatorV3.sol │ │ ├── uniswap │ │ │ ├── IUniswapV2Callee.sol │ │ │ ├── IUniswapV2ERC20.sol │ │ │ ├── IUniswapV2Factory.sol │ │ │ ├── IUniswapV2Pair.sol │ │ │ ├── IUniswapV2Router01.sol │ │ │ └── IUniswapV2Router02.sol │ │ └── weth │ │ └── IWETH.sol │ ├── governance │ │ └── ITimelock.sol │ ├── lbt │ │ └── ILiquidityBasedTWAP.sol │ ├── reserve │ │ └── IVaderReserve.sol │ ├── shared │ │ └── IERC20Extended.sol │ ├── tokens │ │ ├── converter │ │ │ └── IConverter.sol │ │ ├── IUSDV.sol │ │ ├── IVader.sol │ │ └── vesting │ │ └── ILinearVesting.sol │ └── x-vader │ └── IXVader.sol ├── lbt │ └── LiquidityBasedTWAP.sol ├── Migrations.sol ├── mocks │ ├── MockAggregatorV3.sol │ ├── MockConstants.sol │ ├── MockGovernorAlpha.sol │ ├── MockMTree.sol │ ├── MockTarget.sol │ ├── MockTimelock.sol │ ├── MockToken.sol │ ├── MockUniswapV2Factory.sol │ ├── MockUniswapV2Library.sol │ ├── MockUniswapV2Router.sol │ └── MockXVader.sol ├── reserve │ └── VaderReserve.sol ├── shared │ └── ProtocolConstants.sol ├── staking-rewards │ ├── IStakingRewards.sol │ ├── Owned.sol │ ├── Pausable.sol │ ├── RewardsDistributionRecipient.sol │ └── StakingRewards.sol ├── tokens │ ├── converter │ │ └── Converter.sol │ ├── USDV.sol │ ├── Vader.sol │ └── vesting │ └── LinearVesting.sol └── x-vader └── XVader.sol 46 directories, 85 files
There are five different ERC20 tokens in the codebase. Two tokens Synth and LPToken under dex-v2 directory are standard Burnable and Mintable ERC20 tokens. The LPToken represents liquidity issued in fungible tokens and its total supply is tracked by the Vader pool which represents total liquidity issued against the pair which is not necessarily equal to LPToken’s actual total supply as liquidity can be issued in non-fungible tokens as well.
The two tokens USDV and Vader under tokens directory are standard ERC20 tokens with Vader token having an emission curve covered over 5 years duration.
The token XVader under x-vader directory is a standard ERC20 token that inherits from ERC20Votes contract from Openzeppelin. This token is for governance purposes in Vader’s GovernorAlpha contract.
The Vader approach to implement pools of pairs is different from Uniswap’s. There is a singleton pool contract that implements the logic for pairs. All the pairs comprise of native and foreign assets. The native asset is USDV , while the foreign asset can be any ERC20 compatible token. The pool contract implements the logic for depositing and withdrawing of liquidity as well as swapping between the foreign assets among two different pairs and between native and foreign assets of a pair. The liquidity issued against the pairs in pool can be in non-fungible token, fungible token or synthetic token. There is a Vader Reserve contract that covers any impermanent loss experienced by liquidity providers. The codebase implements a TWAP feature which makes use of aggregation over several Uniswap and Vader pools to determine the true USD value of Vader and USDV, respectively. As xVADER token is mintable, the GovernorAlpha contract makes use of the snapshotted total supply of xVADER at the time of proposal creation to determine a proposal’s outcome.
VaderBond is a modification of Olympus DAO / Pro contracts.
The audit should be focused on the LBTwap implementation under contracts/lbt, the USDV implementation under contracts/token and the functionality related in the AMM.
The following contract/directories are excluded as they are already audited but included in the repository for reference.