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Kine Protocol

61%

Process Quality Review (0.7)

Kine Protocol

Final score:61%
Date:01 Sep 2021
Audit Process:version 0.7
Author:Nick
PQR Score:61%

FAIL

Scoring Appendix

The final review score is indicated as a percentage. The percentage is calculated as Achieved Points due to MAX Possible Points. For each element the answer can be either Yes/No or a percentage. For a detailed breakdown of the individual weights of each question, please consult this document.

The blockchain used by this protocol
BnB Smart Chain
Ethereum
Polygon
#QuestionAnswer
95%
1.100%
2.100%
3.Yes
4.50%
5.Yes
88%
6.Yes
7.Yes
8.100%
9.70%
10.60%
10%
11.0%
12.0%
13.No
14.0%
15.0%
16.100%
79%
17.90%
18.0%
11%
19.0%
20.0%
21.0%
22.40%
Total:61%

Very simply, the audit looks for the following declarations from the developer's site. With these declarations, it is reasonable to trust the smart contracts.

  • Here is my smart contract on the blockchain
  • You can see it matches a software repository used to develop the code
  • Here is the documentation that explains what my smart contract does
  • Here are the tests I ran to verify my smart contract
  • Here are the audit(s) performed to review my code by third party experts

This report is for informational purposes only and does not constitute investment advice of any kind, nor does it constitute an offer to provide investment advisory or other services. Nothing in this report shall be considered a solicitation or offer to buy or sell any security, token, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction. Nothing contained in this report constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed in this report should not be taken as advice to buy, sell or hold any security. The information in this report should not be relied upon for the purpose of investing. In preparing the information contained in this report, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor. This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.

Any views expressed in this report by us were prepared based upon the information available to us at the time such views were written. The views expressed within this report are limited to DeFiSafety and the author and do not reflect those of any additional or third party and are strictly based upon DeFiSafety, its authors, interpretations and evaluation of relevant data. Changed or additional information could cause such views to change. All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.

This completed report is copyright (c) DeFiSafety 2023. Permission is given to copy in whole, retaining this copyright label.

Code And Team

95%

This section looks at the code deployed on the Mainnet that gets reviewed and its corresponding software repository. The document explaining these questions is here.

1. Are the executing code addresses readily available? (%)

Answer: 100%

They are available at website https://docs.kine.io/whitepaper/contract-address, as indicated in the Appendix.

Percentage Score Guidance:
100%
Clearly labelled and on website, docs or repo, quick to find
70%
Clearly labelled and on website, docs or repo but takes a bit of looking
40%
Addresses in mainnet.json, in discord or sub graph, etc
20%
Address found but labeling not clear or easy to find
0%
Executing addresses could not be found

2. Is the code actively being used? (%)

Answer: 100%

Activity is over 10 transactions a day on contract Unitroller.sol (Controller), as indicated in the Appendix.

Percentage Score Guidance:
100%
More than 10 transactions a day
70%
More than 10 transactions a week
40%
More than 10 transactions a month
10%
Less than 10 transactions a month
0%
No activity

3. Is there a public software repository? (Y/N)

Answer: Yes

Is there a public software repository with the code at a minimum, but also normally test and scripts. Even if the repository was created just to hold the files and has just 1 transaction, it gets a "Yes". For teams with private repositories, this answer is "No"

Score Guidance:
Yes
There is a public software repository with the code at a minimum, but also normally test and scripts. Even if the repository was created just to hold the files and has just 1 transaction.
No
For teams with private repositories.

4. Is there a development history visible? (%)

Answer: 50%

With 63 commits and 3 branches, this is a semi-healthy software repository.

This metric checks if the software repository demonstrates a strong steady history. This is normally demonstrated by commits, branches and releases in a software repository. A healthy history demonstrates a history of more than a month (at a minimum).

Percentage Score Guidance:
100%
Any one of 100+ commits, 10+branches
70%
Any one of 70+ commits, 7+branches
50%
Any one of 50+ commits, 5+branches
30%
Any one of 30+ commits, 3+branches
0%
Less than 2 branches or less than 30 commits

5. Is the team public (not anonymous)? (Y/N)

Answer: Yes

For a "Yes" in this question, the real names of some team members must be public on the website or other documentation (LinkedIn, etc). If the team is anonymous, then this question is a "No".

Documentation

88%

This section looks at the software documentation. The document explaining these questions is here.

6. Is there a whitepaper? (Y/N)

Answer: Yes

7. Are the basic software functions documented? (Y/N)

Answer: Yes

8. Does the software function documentation fully (100%) cover the deployed contracts? (%)

Answer: 100%

All contracts and software functions are documented at https://github.com/Kine-Technology/kine-protocol/tree/main/docs.

Percentage Score Guidance:
100%
All contracts and functions documented
80%
Only the major functions documented
79 - 1%
Estimate of the level of software documentation
0%
No software documentation

9. Are there sufficiently detailed comments for all functions within the deployed contract code (%)

Answer: 70%

Code examples are in the Appendix. As per the SLOC, there is 70% commenting to code (CtC).

The Comments to Code (CtC) ratio is the primary metric for this score.

Percentage Score Guidance:
100%
CtC > 100 Useful comments consistently on all code
90 - 70%
CtC > 70 Useful comment on most code
60 - 20%
CtC > 20 Some useful commenting
0%
CtC < 20 No useful commenting

10. Is it possible to trace from software documentation to the implementation in code (%)

Answer: 60%

Although Kine Protocol does a good job at indicating how the software functions interact with each other, what that looks like, and what it does, they do not explicitly lead it back to their own source code. Therefore, it comes non-explicit traceability.

Percentage Score Guidance:
100%
Clear explicit traceability between code and documentation at a requirement level for all code
60%
Clear association between code and documents via non explicit traceability
40%
Documentation lists all the functions and describes their functions
0%
No connection between documentation and code

Testing

10%

11. Full test suite (Covers all the deployed code) (%)

Answer: 0%

There is no testing suite in the Kine Protocol GitHub repository.

This score is guided by the Test to Code ratio (TtC). Generally a good test to code ratio is over 100%. However the reviewers best judgement is the final deciding factor.

Percentage Score Guidance:
100%
TtC > 120% Both unit and system test visible
80%
TtC > 80% Both unit and system test visible
40%
TtC < 80% Some tests visible
0%
No tests obvious

12. Code coverage (Covers all the deployed lines of code, or explains misses) (%)

Answer: 0%

There is no evidence of a Kine Protocol code coverage in any of their documentation or in their PeckShield audit report.​

Percentage Score Guidance:
100%
Documented full coverage
99 - 51%
Value of test coverage from documented results
50%
No indication of code coverage but clearly there is a reasonably complete set of tests
30%
Some tests evident but not complete
0%
No test for coverage seen

13. Scripts and instructions to run the tests? (Y/N)

Answer: No

No scripts and instructions to run were found

14. Report of the results (%)

Answer: 0%

There is no evidence of a test result report in any of the Kine Protocol documentation.

Percentage Score Guidance:
100%
Detailed test report as described below
70%
GitHub code coverage report visible
0%
No test report evident

15. Formal Verification test done (%)

Answer: 0%

There is no evidence of a Kine Protocol Formal Verification test in any of their documentation.

16. Stress Testing environment (%)

Answer: 100%

There is evidence of Kine Protocol's testnet smart contract usage at https://github.com/Kine-Technology/kine-protocol/tree/main/network.

Security

79%

This section looks at the 3rd party software audits done. It is explained in this document.

17. Did 3rd Party audits take place? (%)

Answer: 90%

​PeckShield published a Kine Protocol audit report on February 6th 2021, which was before their mainnet deployment on March 23rd.

Percentage Score Guidance:
100%
Multiple Audits performed before deployment and results public and implemented or not required
90%
Single audit performed before deployment and results public and implemented or not required
70%
Audit(s) performed after deployment and no changes required. Audit report is public
50%
Audit(s) performed after deployment and changes needed but not implemented
20%
No audit performed
0%
Audit Performed after deployment, existence is public, report is not public and no improvements deployed OR smart contract address not found, (where question 1 is 0%)
Deduct 25% if code is in a private repo and no note from auditors that audit is applicable to deployed code.

18. Is the bug bounty acceptable high? (%)

Answer: 0%

There is no evidence of a Kine Protocol Bug Bounty program in any of their documentation or in further web searches.

Percentage Score Guidance:
100%
Bounty is 10% TVL or at least $1M AND active program (see below)
90%
Bounty is 5% TVL or at least 500k AND active program
80%
Bounty is 5% TVL or at least 500k
70%
Bounty is 100k or over AND active program
60%
Bounty is 100k or over
50%
Bounty is 50k or over AND active program
40%
Bounty is 50k or over
20%
Bug bounty program bounty is less than 50k
0%
No bug bounty program offered
An active program means that a third party (such as Immunefi) is actively driving hackers to the site. An inactive program would be static mentions on the docs.

Access Controls

11%

This section covers the documentation of special access controls for a DeFi protocol. The admin access controls are the contracts that allow updating contracts or coefficients in the protocol. Since these contracts can allow the protocol admins to "change the rules", complete disclosure of capabilities is vital for user's transparency. It is explained in this document.

19. Can a user clearly and quickly find the status of the access controls (%)

Answer: 0%

There are currently no access controls documented in the Kine Protocol documentation as they do not currently have a governance model. However, they have stated that this will be a future addition to their ecosystem.

Percentage Score Guidance:
100%
Clearly labelled and on website, docs or repo, quick to find
70%
Clearly labelled and on website, docs or repo but takes a bit of looking
40%
Access control docs in multiple places and not well labelled
20%
Access control docs in multiple places and not labelled
0%
Admin Control information could not be found

20. Is the information clear and complete (%)

Answer: 0%

There are currently no access controls documented in the Kine Protocol documentation as they do not currently have a governance model. However, they have stated that this will be a future addition to their ecosystem.

Percentage Score Guidance:
All the contracts are immutable -- 100% OR
a) All contracts are clearly labelled as upgradeable (or not) -- 30% AND
b) The type of ownership is clearly indicated (OnlyOwner / MultiSig / Defined Roles) -- 30% AND
c) The capabilities for change in the contracts are described -- 30%

21. Is the information in non-technical terms that pertain to the investments (%)

Answer: 0%

There are currently no access controls documented in the Kine Protocol documentation as they do not currently have a governance model. However, they have stated that this will be a future addition to their ecosystem.

Percentage Score Guidance:
100%
All the contracts are immutable
90%
Description relates to investments safety and updates in clear, complete non-software language
30%
Description all in software specific language
0%
No admin control information could be found

22. Is there Pause Control documentation including records of tests (%)

Answer: 40%

Pause Guardian is mentioned in the Kine Protocol documentation, but no details on capability or test records.

Percentage Score Guidance:
100%
All the contracts are immutable or no pause control needed and this is explained OR Pause control(s) are clearly documented and there is records of at least one test within 3 months
80%
Pause control(s) explained clearly but no evidence of regular tests
40%
Pause controls mentioned with no detail on capability or tests
0%
Pause control not documented or explained

Appendices

 The author of this review is Rex of DeFi Safety.

Email: rex@defisafety.com
Twitter: @defisafety

I started with Ethereum just before the DAO and that was a wonderful education.  It showed the importance of code quality. The second Parity hack also showed the importance of good process.  Here my aviation background offers some value. Aerospace knows how to make reliable code using quality processes.
I was coaxed to go to EthDenver 2018 and there I started SecuEth.org with Bryant and Roman. We created guidelines on good processes for blockchain code development. We got EthFoundation funding to assist in their development Process Quality Reviews are an extension of the SecurEth guidelines that will further increase the quality processes in Solidity and Vyper development. DeFiSafety is my full time gig and we are working on funding vehicles for a permanent staff.

1contract Controller is ControllerStorage, KineControllerInterface, Exponential, ControllerErrorReporter {
2    /// @notice Emitted when an admin supports a market
3    event MarketListed(KToken kToken);
45    /// @notice Emitted when an account enters a market
6    event MarketEntered(KToken kToken, address account);
78    /// @notice Emitted when an account exits a market
9    event MarketExited(KToken kToken, address account);
1011    /// @notice Emitted when close factor is changed by admin
12    event NewCloseFactor(uint oldCloseFactorMantissa, uint newCloseFactorMantissa);
1314    /// @notice Emitted when a collateral factor is changed by admin
15    event NewCollateralFactor(KToken kToken, uint oldCollateralFactorMantissa, uint newCollateralFactorMantissa);
1617    /// @notice Emitted when liquidation incentive is changed by admin
18    event NewLiquidationIncentive(uint oldLiquidationIncentiveMantissa, uint newLiquidationIncentiveMantissa);
1920    /// @notice Emitted when redemption params is changed by admin
21    event NewRedemptionInitialPunishment(uint oldRedemptionInitialPunishmentMantissa, uint newRedemptionInitialPunishmentMantissa);
2223    /// @notice Emitted when price oracle is changed
24    event NewPriceOracle(KineOracleInterface oldPriceOracle, KineOracleInterface newPriceOracle);
2526    /// @notice Emitted when pause guardian is changed
27    event NewPauseGuardian(address oldPauseGuardian, address newPauseGuardian);
2829    /// @notice Emitted when an action is paused globally
30    event ActionPaused(string action, bool pauseState);
3132    /// @notice Emitted when an action is paused on a market
33    event ActionPaused(KToken kToken, string action, bool pauseState);
3435    /// @notice Emitted when borrow cap for a kToken is changed
36    event NewBorrowCap(KToken indexed kToken, uint newBorrowCap);
3738    /// @notice Emitted when supply cap for a kToken is changed
39    event NewSupplyCap(KToken indexed kToken, uint newSupplyCap);
4041    /// @notice Emitted when borrow/supply cap guardian is changed
42    event NewCapGuardian(address oldCapGuardian, address newCapGuardian);
4344    // closeFactorMantissa must be strictly greater than this value
45    uint internal constant closeFactorMinMantissa = 0.05e18; // 0.05
4647    // closeFactorMantissa must not exceed this value
48    uint internal constant closeFactorMaxMantissa = 0.9e18; // 0.9
4950    // liquidationIncentiveMantissa must be no less than this value
51    uint internal constant liquidationIncentiveMinMantissa = 1.0e18; // 1.0
5253    // liquidationIncentiveMantissa must be no greater than this value
54    uint internal constant liquidationIncentiveMaxMantissa = 1.5e18; // 1.5
5556    // No collateralFactorMantissa may exceed this value
57    uint internal constant collateralFactorMaxMantissa = 0.9e18; // 0.9
5859    constructor() public {
60        admin = msg.sender;
61    }
6263    modifier onlyAdmin() {
64        require(msg.sender == admin, "only admin can call this function");
65        _;
66    }
6768    /*** Assets You Are In ***/
6970    /**
71     * @notice Returns the assets an account has entered
72     * @param account The address of the account to pull assets for
73     * @return A dynamic list with the assets the account has entered
74     */
75    function getAssetsIn(address account) external view returns (KToken[] memory) {
76        KToken[] memory assetsIn = accountAssets[account];
7778        return assetsIn;
79    }
8081    /**
82     * @notice Returns whether the given account is entered in the given asset
83     * @param account The address of the account to check
84     * @param kToken The kToken to check
85     * @return True if the account is in the asset, otherwise false.
86     */
87    function checkMembership(address account, KToken kToken) external view returns (bool) {
88        return markets[address(kToken)].accountMembership[account];
89    }
9091    /**
92     * @notice Add assets to be included in account liquidity calculation
93     * @param kTokens The list of addresses of the kToken markets to be enabled
94     * @dev will revert if any market entering failed
95     */
96    function enterMarkets(address[] memory kTokens) public {
97        uint len = kTokens.length;
98        for (uint i = 0; i < len; i++) {
99            KToken kToken = KToken(kTokens[i]);
100            addToMarketInternal(kToken, msg.sender);
101        }
102    }
103104    /**
105     * @notice Add the market to the borrower's "assets in" for liquidity calculations
106     * @param kToken The market to enter
107     * @param borrower The address of the account to modify
108     */
109    function addToMarketInternal(KToken kToken, address borrower) internal {
110        Market storage marketToJoin = markets[address(kToken)];
111112        require(marketToJoin.isListed, MARKET_NOT_LISTED);
113114        if (marketToJoin.accountMembership[borrower] == true) {
115            // already joined
116            return;
117        }
118119        // survived the gauntlet, add to list
120        // NOTE: we store these somewhat redundantly as a significant optimization
121        //  this avoids having to iterate through the list for the most common use cases
122        /  that is, only when we need to perform liquidity checks
123        /  and not whenever we want to check if an account is in a particular market
124        marketToJoin.accountMembership[borrower] = true;
125        accountAssets[borrower].push(kToken);
126127        emit MarketEntered(kToken, borrower);
128    }
129130    /**
131     * @notice Removes asset from sender's account liquidity calculation
132     * @dev Sender must not have an outstanding borrow balance in the asset,
133     *  or be providing necessary collateral for an outstanding borrow.
134     * @param kTokenAddress The address of the asset to be removed
135     */
136    function exitMarket(address kTokenAddress) external {
137        KToken kToken = KToken(kTokenAddress);
138        /* Get sender tokensHeld and amountOwed underlying from the kToken */
139        (uint tokensHeld, uint amountOwed) = kToken.getAccountSnapshot(msg.sender);
140141        /* Fail if the sender has a borrow balance */
142        require(amountOwed == 0, EXIT_MARKET_BALANCE_OWED);
143144        /* Fail if the sender is not permitted to redeem all of their tokens */
145        (bool allowed,) = redeemAllowedInternal(kTokenAddress, msg.sender, tokensHeld);
146        require(allowed, EXIT_MARKET_REJECTION);
147148        Market storage marketToExit = markets[address(kToken)];
149150        /* Succeed true if the sender is not already ‘in’ the market */
151        if (!marketToExit.accountMembership[msg.sender]) {
152            return;
153        }
154155        /* Set kToken account membership to false */
156        delete marketToExit.accountMembership[msg.sender];
157158        /* Delete kToken from the account’s list of assets */
159        // load into memory for faster iteration
160        KToken[] memory userAssetList = accountAssets[msg.sender];
161        uint len = userAssetList.length;
162        uint assetIndex = len;
163        for (uint i = 0; i < len; i++) {
164            if (userAssetList[i] == kToken) {
165                assetIndex = i;
166                break;
167            }
168        }
169170        // We *must* have found the asset in the list or our redundant data structure is broken
171        require(assetIndex < len, "accountAssets array broken");
172173        // copy last item in list to location of item to be removed, reduce length by 1
174        KToken[] storage storedList = accountAssets[msg.sender];
175        if (assetIndex != storedList.length - 1) {
176            storedList[assetIndex] = storedList[storedList.length - 1];
177        }
178        storedList.length--;
179180        emit MarketExited(kToken, msg.sender);
181    }
182

Solidity Contracts

Language
Files
Lines
Blanks
Comments
Code
Complexity
Solidity
55
9599
1517
3322
4760
520

Comments to Code: 3322 / 4760 =  70 %

JavaScript Tests

Language
Files
Lines
Blanks
Comments
Code
Complexity
JavaScript
0
0
0
0
0
0