Curves

Curves audit details

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• Read our guidelines for more details
• Starts January 8, 2024 20:00 UTC
• Ends January 15, 2024 20:00 UTC

Automated Findings / Publicly Known Issues

The 4naly3er report can be found here.

Automated findings output for the audit can be found here within 24 hours of audit opening.

Note for C4 wardens: Anything included in this Automated Findings / Publicly Known Issues section is considered a publicly known issue and is ineligible for awards.

Overview

Scoping detail

The audit will encompass the following files, each integral to the functioning of the protocol:

1. Curves.sol: This is the primary file of the Curves protocol. It contains the core logic and functions that define the overall behavior and rules of the system. This file started as a fork of friend.tech FriendtechSharesV1.sol

2. CurvesERC20.sol: This file defines the ERC20 token that will be created upon exporting a Curve token. It outlines the token's properties and behaviors consistent with the ERC20 standard.

3. CurvesERC20Factory.sol: Serving as an ERC20 factory, this file abstracts the logic for ERC20 token creation. Its primary purpose is to streamline the token creation process and reduce the overall footprint of the protocol, ensuring efficiency and scalability.

4. FeeSplitter.sol: This script manages the distribution of fees. It is responsible for the fair and accurate division of transaction fees amongst token holders, in line with the protocol's incentive structure.

5. Security.sol: This file standardizes the security criteria for the protocol. It includes protocols and measures designed to safeguard the system against vulnerabilities and ensure compliance with established security standards.

Each of these files plays a crucial role in the protocol’s architecture and functionality. The audit will methodically evaluate them for security, efficiency, and adherence to best practices in smart contract development.

Summary

The Curves protocol, an extension of friend.tech, introduces several innovative features. For context on friend.tech, consider this insightful article: Friend Tech Smart Contract Breakdown. Key enhancements in the Curves protocol include:

1. Token Export to ERC20: This pivotal feature allows users to transfer their tokens from the Curves protocol to the ERC20 format. Such interoperability significantly expands usability across various platforms. Within Curves, tokens lack decimal places, but when converted to ERC20, they adopt a standard 18-decimal format. Importantly, users can seamlessly reintegrate their ERC20 tokens into the Curves ecosystem, albeit only as whole, integer units.

2. Referral Fee Implementation: Curves empowers protocols built upon its framework by enabling them to earn a percentage of all user transaction fees. This incentive mechanism benefits both the base protocol and its derivative platforms.

3. Presale Feature: Learning from the pitfalls of friend.tech, particularly issues with frontrunners during token launches, Curves incorporates a presale phase. This allows creators to manage and stabilize their tokens prior to public trading, ensuring a more controlled and equitable distribution.

4. Token Holder Fee: To encourage long-term holding over short-term trading, Curves introduces a fee distribution model that rewards token holders. This fee is proportionally divided among all token holders, incentivizing sustained investment in the ecosystem.

These additions by Curves not only enhance functionality but also foster a more robust and inclusive financial ecosystem.

Documentation

There's no official friend.tech documentation but there's a lot of great articles. Here you can find some of them:

Friend Tech Smart Contracts.

Friend Tech Smart Contract Breakdown.

Understanding Friend Tech through Smart Contracts.

Scope

Out of scope

Any file not listed in the scope above is out of scope.

Additional Context

• The Curves contract employs the same mathematical curve used by friend.tech. This functionality is encapsulated in the getPrice method within the Curves.sol file.
• Curves exclusively supports payments in ETH; it does not facilitate transactions using ERC20 tokens. The sole exception involves ERC20 tokens that are generated by Curves itself for the purpose of exporting a token.
• The Curves protocol is designed to operate on the Form Network, a Layer 2 EVM-compatible network built on the OP Superchain infrastructure. This enables enhanced scalability and efficiency.
• In the Curves ecosystem, there are two distinct roles:
  1. Owner: This role is singular and encompasses significant administrative capabilities. The Owner is responsible for assigning the FeeSplitter and TokenFactory within Curves. Additionally, the Owner has the exclusive authority to set the protocol fee and is the only entity capable of granting the Manager role.
  2. Manager: Managers possess the authority to adjust various fees, with the exception of the protocol fee. While the protocol currently supports multiple managers, the long-term vision is to transition this responsibility to a decentralized autonomous organization (DAO), fostering greater community involvement and decentralized governance.

Attack ideas (Where to look for bugs)

The primary security threats that our protocol aims to mitigate include:

1. Price Manipulation: This involves strategies or exploits used to purchase tokens at a value that does not reflect their true market price. Preventing such manipulation is crucial to maintain fair trading practices and ensure the integrity of the token's valuation.

2. Token Minting Issues: We are vigilant against any vulnerabilities that could lead to unauthorized or erroneous creation of tokens. Such issues can cause inflation in the token supply, thereby diluting the value of existing tokens and destabilizing the economy of the protocol.

3. Token Holder Distribution Errors: It is imperative to safeguard against any bugs that might lead to incorrect distribution of fees among token holders. Accurate and fair distribution is key to maintaining trust and incentivizing participation within the ecosystem. Ensuring that these fees are allocated correctly according to the predefined rules is essential for the health and sustainability of the protocol.

Main invariants

For any token associated with Curves, it's imperative that the total ERC20 supply remains exactly equivalent to the value locked within the Curves protocol. This one-to-one correspondence ensures consistency and integrity between the ERC20 tokens in circulation and the underlying assets within the Curves ecosystem.

Scoping Details

- If you have a public code repo, please share it here: https://github.com/roll-network/curves  
- How many contracts are in scope?: 5   
- Total SLoC for these contracts?: 660  
- How many external imports are there?: 5  
- How many separate interfaces and struct definitions are there for the contracts within scope?: 5  
- Does most of your code generally use composition or inheritance?: Composition   
- How many external calls?: 0   
- What is the overall line coverage percentage provided by your tests?: 100
- Is this an upgrade of an existing system?: True - Fork from tech.finance
- Check all that apply (e.g. timelock, NFT, AMM, ERC20, rollups, etc.): Uses L2, ERC-20 Token 
- Is there a need to understand a separate part of the codebase / get context in order to audit this part of the protocol?: False   
- Please describe required context:   
- Does it use an oracle?: No
- Describe any novel or unique curve logic or mathematical models your code uses: The curve is the same as tech.finance 
- Is this either a fork of or an alternate implementation of another project?:   
- Does it use a side-chain?:
- Describe any specific areas you would like addressed:

Tests

See install.md