logo
bg_imgbg_imgbg_imgbg_img
exclamation mark iconReport an issue

If you notice some outdated information please let us know!

close icon
Name
Email
Your message
arrow-left

Ribbon Finance

77%

Previous versions

Process Quality Review (0.8)

Ribbon Finance

Final score:77%
Date:11 Apr 2022
Audit Process:version 0.8
Author:Nick of DeFiSafety
PQR Score:77%

PASS

Protocol Website:

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
Avalanche
Ethereum
#QuestionAnswer
97%
1.100%
2.70%
3.Yes
4.100%
5.100
86%
6.Yes
7.Yes
8.80%
9.60%
80%
10.100%
11.100%
12.Yes
13.0%
14.No
15.Yes
85%
16.90%
17.50%
39%
18.100%
19.0%
20.100%
21.100%
22.30%
23.0%
24.0%
25.0%
100%
26.100%
27.Yes
28.Yes
Total:77%

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 2021. Permission is given to copy in whole, retaining this copyright label.

Smart Contracts & Team

97%

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

1. Are the smart contract addresses easy to find?(%)

Answer: 100%

Contracts are easily found in the documentation.

Percentage Score Guidance:
100%
Clearly labelled and on website, documents or repository, 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. How active is the primary contract? (%)

Answer: 70%

At over 10 transactions a week, this contract is relatively active.

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. Does the protocol have a public software repository? (Y/N)

Answer: Yes

This protocol's github is well identified.

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: 100%

At an astonishing 165 branches with 143 commits, Ribbon's development is clearly well wrapped and won't be getting cut short any time.

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: 100

Two team members publicly identify themselves, but this information is not listed anywhere and required additional research.

Score Guidance:
100%
At least two names can be easily found in the protocol's website, documentation or medium. These are then confirmed by the personal websites of the individuals / their linkedin / twitter.
50%
At least one public name can be found to be working on the protocol.
0%
No public team members could be found.

Documentation

86%

The difference between this and the old link is solely the link.    This section looks at the software documentation. The document explaining these questions is here.

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

Answer: Yes

Ribbon has a whitepaper.

7. Is the protocol's software architecture documented? (Y/N)

Answer: Yes

Software architecture is documented.

Score Guidance:
Yes
The documents identify software architecture and contract interaction through any of the following: diagrams, arrows, specific reference to software functions or a written explanation on how smart contracts interact.
No
Protocols receive a "no" if none of these are included.

8. Does the software documentation fully cover the deployed contracts' source code? (%)

Answer: 80%

Major contract functions are covered.

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. Is it possible to trace the documented software to its implementation in the protocol's source code? (%)

Answer: 60%

There is no traceability, but there is association.

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

80%

10. Has the protocol tested their deployed code? (%)

Answer: 100%

With a TtC of 777%, this protocol has clearly tested its code.

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

11. How covered is the protocol's code? (%)

Answer: 100%

Evidence of code coverage was not found, but there is clear evidence of testing given the high TtC. At 7 times the number of lines of test code to deployed code, it is fair to say that this protocol has full code coverage.

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 complete set of tests
30%
Some tests evident but not complete
0%
No test for coverage seen

12. Does the protocol provide scripts and instructions to run their tests? (Y/N)

Answer: Yes

Scripts are found in the GitHub.

Score Guidance:
Yes
Scripts and/or instructions to run tests are available in the testing suite
No
Scripts and/or instructions to run tests are not available in the testing suite

13. Is there a detailed report of the protocol's test results?(%)

Answer: 0%

No test report was found.

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

14. Has the protocol undergone Formal Verification? (Y/N)

Answer: No

Ribbon has not undergone formal verification.

Score Guidance:
Yes
Formal Verification was performed and the report is readily available
No
Formal Verification was not performed and/or the report is not readily available.

15. Were the smart contracts deployed to a testnet? (Y/N)

Answer: Yes
Score Guidance:
Yes
Protocol has proved their tesnet usage by providing the addresses
No
Protocol has not proved their testnet usage by providing the addresses

Security

85%

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

16. Is the protocol sufficiently audited? (%)

Answer: 90%

Ribbon V2 was audited before and after launch by OpenZeppelin and ChainSafe.

Percentage Score Guidance:
100%
Multiple Audits performed before deployment and the audit findings are public and implemented or not required
90%
Single audit performed before deployment and audit findings are public and implemented or not required
70%
Audit(s) performed after deployment and no changes required. The Audit report is public.
65%
Code is forked from an already audited protocol and a changelog is provided explaining why forked code was used and what changes were made. This changelog must justify why the changes made do not affect the audit.
50%
Audit(s) performed after deployment and changes are needed but not implemented.
30%
Audit(s) performed are low-quality and do not indicate proper due diligence.
20%
No audit performed
0%
Audit Performed after deployment, existence is public, report is not public OR smart contract address' not found.
Deduct 25% if the audited code is not available for comparison.

17. Is the bounty value acceptably high (%)

Answer: 50%

Ribbon offers $50K with Immunefi.

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 / the bug bounty program is dead
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.

Admin Controls

39%

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.

18. Is the protocol's admin control information easy to find?

Answer: 100%

Information is easily located.

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

19. Are relevant contracts clearly labelled as upgradeable or immutable? (%)

Answer: 0%

No contracts are labelled as upgradeable/ immutable.

Percentage Score Guidance:
100%
Both the contract documentation and the smart contract code state that the code is not upgradeable or immutable.
80%
All Contracts are clearly labelled as upgradeable (or not)
50%
Code is immutable but not mentioned anywhere in the documentation
0%
Admin control information could not be found

20. Is the type of smart contract ownership clearly indicated? (%)

Answer: 100%

Ownership is clearly detailed here. This could be clearer about which specific contracts are owned by these System Roles, nonetheless.

Percentage Score Guidance:
100%
The type of ownership is clearly indicated in their documentation. (OnlyOwner / MultiSig / etc)
50%
The type of ownership is indicated, but only in the code. (OnlyOwner / MultiSig / etc)
0%
Admin Control information could not be found

21. Are the protocol's smart contract change capabilities described? (%)

Answer: 100%

Some capabilities are described in a relatively specific way.

Percentage Score Guidance:
100%
The documentation covers the capabilities for change for all smart contracts
50%
The documentation covers the capabilities for change in some, but not all contracts
0%
The documentation does not cover the capabilities for change in any contract

22. Is the protocol's admin control information easy to understand? (%)

Answer: 30%

This information is in software specific language.

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

23. Is there sufficient Pause Control documentation? (%)

Answer: 0%

No pause control was found.

Percentage Score Guidance:
100%
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

24. Is there sufficient Timelock documentation? (%)

Answer: 0%

There was no timelock documentation found.

Percentage Score Guidance:
100%
Documentation identifies and explains why the protocol does not need a Timelock OR Timelock documentation identifies its duration, which contracts it applies to and justifies this time period.
60%
A Timelock is identified and its duration is specified
30%
A Timelock is identified
0%
No Timelock information was documented

25. Is the Timelock of an adequate length? (Y/N)

Answer: 0%

No information was found.

Percentage Score Guidance:
100%
Timelock is between 48 hours to 1 week OR justification as to why no Timelock is needed / is outside this length.
50%
Timelock is less than 48 hours or greater than 1 week.
0%
No Timelock information was documented OR no timelock length was identified.

Oracles

100%

This section goes over the documentation that a protocol may or may not supply about their Oracle usage. Oracles are a fundamental part of DeFi as they are responsible for relaying tons of price data information to thousands of protocols using blockchain technology. Not only are they important for price feeds, but they are also an essential component of transaction verification and security. This is explained in this document.

26. Is the protocol's Oracle sufficiently documented? (%)

Answer: 100%

Ribbon uses Opyn, and so inherits Chainlink oracle usage. Software function documentation is indetified in Opyn's documentation.

Percentage Score Guidance:
100%
If it uses one, the Oracle is specified. The contracts dependent on the oracle are identified. Basic software functions are identified (if the protocol provides its own price feed data). Timeframe of price feeds are identified. OR The reason as to why the protocol does not use an Oracle is identified and explained.
75%
The Oracle documentation identifies both source and timeframe, but does not provide additional context regarding smart contracts.
50%
Only the Oracle source is identified.
0%
No oracle is named / no oracle information is documented.

27. Is front running mitigated by this protocol? (Y/N)

Answer: Yes

Ribbon uses batch auctions, which eliminate front-running by using just one clearing price.

Score Guidance:
Yes
The protocol cannot be front run and there is an explanation as to why OR documented front running countermeasures are implemented.
No
The Oracle documentation identifies both source and timeframe, but does not provide additional context regarding smart contracts.

28. Can flashloan attacks be applied to the protocol, and if so, are those flashloan attack risks mitigated? (Y/N)

Answer: Yes

Ribbon inherits Chainlink, which ensures no flashloan attacks can be applied to Ribbon.

Score Guidance:
Yes
The protocol's documentation includes information on how they mitigate the possibilities and extents of flash loan attacks.
No
The protocol's documentation does not include any information regarding the mitigation of flash loan attacks.

Appendices

null
1// SPDX-License-Identifier: MIT
2pragma solidity =0.8.4;
3
4import {SafeMath} from "@openzeppelin/contracts/utils/math/SafeMath.sol";
5import {IERC20} from "@openzeppelin/contracts/token/ERC20/IERC20.sol";
6import {
7    SafeERC20
8} from "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
9import {GnosisAuction} from "../../libraries/GnosisAuction.sol";
10import {Vault} from "../../libraries/Vault.sol";
11import {VaultLifecycle} from "../../libraries/VaultLifecycle.sol";
12import {VaultLifecycleSTETH} from "../../libraries/VaultLifecycleSTETH.sol";
13import {ShareMath} from "../../libraries/ShareMath.sol";
14import {RibbonVault} from "./base/RibbonVault.sol";
15import {
16    RibbonThetaSTETHVaultStorage
17} from "../../storage/RibbonThetaSTETHVaultStorage.sol";
18
19/**
20 * UPGRADEABILITY: Since we use the upgradeable proxy pattern, we must observe
21 * the inheritance chain closely.
22 * Any changes/appends in storage variable needs to happen in RibbonThetaSTETHVaultStorage.
23 * RibbonThetaSTETHVault should not inherit from any other contract aside from RibbonVault, RibbonThetaSTETHVaultStorage
24 */
25contract RibbonThetaSTETHVault is RibbonVault, RibbonThetaSTETHVaultStorage {
26    using SafeERC20 for IERC20;
27    using SafeMath for uint256;
28    using ShareMath for Vault.DepositReceipt;
29
30    /************************************************
31     *  IMMUTABLES & CONSTANTS
32     ***********************************************/
33
34    /// @notice is the factory contract used to spawn otokens. Used to lookup otokens.
35    address public immutable OTOKEN_FACTORY;
36
37    // The minimum duration for an option auction.
38    uint256 private constant MIN_AUCTION_DURATION = 5 minutes;
39
40    /************************************************
41     *  EVENTS
42     ***********************************************/
43
44    event OpenShort(
45        address indexed options,
46        uint256 depositAmount,
47        address indexed manager
48    );
49
50    event CloseShort(
51        address indexed options,
52        uint256 withdrawAmount,
53        address indexed manager
54    );
55
56    event NewOptionStrikeSelected(uint256 strikePrice, uint256 delta);
57
58    event PremiumDiscountSet(
59        uint256 premiumDiscount,
60        uint256 newPremiumDiscount
61    );
62
63    event AuctionDurationSet(
64        uint256 auctionDuration,
65        uint256 newAuctionDuration
66    );
67
68    event InstantWithdraw(
69        address indexed account,
70        uint256 amount,
71        uint256 round
72    );
73
74    event InitiateGnosisAuction(
75        address indexed auctioningToken,
76        address indexed biddingToken,
77        uint256 auctionCounter,
78        address indexed manager
79    );
80
81    /************************************************
82     *  CONSTRUCTOR & INITIALIZATION
83     ***********************************************/
84
85    /**
86     * @notice Initializes the contract with immutable variables
87     * @param _weth is the Wrapped Ether contract
88     * @param _usdc is the USDC contract
89     * @param _wsteth is the LDO contract
90     * @param _ldo is the LDO contract
91     * @param _oTokenFactory is the contract address for minting new opyn option types (strikes, asset, expiry)
92     * @param _gammaController is the contract address for opyn actions
93     * @param _marginPool is the contract address for providing collateral to opyn
94     * @param _gnosisEasyAuction is the contract address that facilitates gnosis auctions
95     * @param _crvPool is the steth/eth crv stables pool
96     */
97    constructor(
98        address _weth,
99        address _usdc,
100        address _wsteth,
101        address _ldo,
102        address _oTokenFactory,
103        address _gammaController,
104        address _marginPool,
105        address _gnosisEasyAuction,
106        address _crvPool
107    )
108        RibbonVault(
109            _weth,
110            _usdc,
111            _wsteth,
112            _ldo,
113            _gammaController,
114            _marginPool,
115            _gnosisEasyAuction,
116            _crvPool
117        )
118    {
119        require(_oTokenFactory != address(0), "!_oTokenFactory");
120        OTOKEN_FACTORY = _oTokenFactory;
121    }
122
123    /**
124     * @notice Initializes the OptionVault contract with storage variables.
125     * @param _owner is the owner of the vault with critical permissions
126     * @param _keeper is the keeper of the vault with medium permissions (weekly actions)
127     * @param _feeRecipient is the address to recieve vault performance and management fees
128     * @param _managementFee is the management fee pct.
129     * @param _performanceFee is the perfomance fee pct.
130     * @param _tokenName is the name of the token
131     * @param _tokenSymbol is the symbol of the token
132     * @param _optionsPremiumPricer is the address of the contract with the
133       black-scholes premium calculation logic
134     * @param _strikeSelection is the address of the contract with strike selection logic
135     * @param _premiumDiscount is the vault's discount applied to the premium
136     * @param _auctionDuration is the duration of the gnosis auction
137     * @param _vaultParams is the struct with vault general data
138     */
139    function initialize(
140        address _owner,
141        address _keeper,
142        address _feeRecipient,
143        uint256 _managementFee,
144        uint256 _performanceFee,
145        string memory _tokenName,
146        string memory _tokenSymbol,
147        address _optionsPremiumPricer,
148        address _strikeSelection,
149        uint32 _premiumDiscount,
150        uint256 _auctionDuration,
151        Vault.VaultParams calldata _vaultParams
152    ) external initializer {
153        baseInitialize(
154            _owner,
155            _keeper,
156            _feeRecipient,
157            _managementFee,
158            _performanceFee,
159            _tokenName,
160            _tokenSymbol,
161            _vaultParams
162        );
163        require(_optionsPremiumPricer != address(0), "!_optionsPremiumPricer");
164        require(_strikeSelection != address(0), "!_strikeSelection");
165        require(
166            _premiumDiscount > 0 &&
167                _premiumDiscount < 100 * Vault.PREMIUM_DISCOUNT_MULTIPLIER,
168            "!_premiumDiscount"
169        );
170        require(_auctionDuration >= MIN_AUCTION_DURATION, "!_auctionDuration");
171        optionsPremiumPricer = _optionsPremiumPricer;
172        strikeSelection = _strikeSelection;
173        premiumDiscount = _premiumDiscount;
174        auctionDuration = _auctionDuration;
175    }
176
177    /************************************************
178     *  SETTERS
179     ***********************************************/
180
181    /**
182     * @notice Sets the new discount on premiums for options we are selling
183     * @param newPremiumDiscount is the premium discount
184     */
185    function setPremiumDiscount(uint256 newPremiumDiscount) external onlyOwner {
186        require(
187            newPremiumDiscount > 0 &&
188                newPremiumDiscount < 100 * Vault.PREMIUM_DISCOUNT_MULTIPLIER,
189            "Invalid discount"
190        );
191
192        emit PremiumDiscountSet(premiumDiscount, newPremiumDiscount);
193        premiumDiscount = newPremiumDiscount;
194    }
195
196    /**
197     * @notice Sets the new auction duration
198     * @param newAuctionDuration is the auction duration
199     */
200    function setAuctionDuration(uint256 newAuctionDuration) external onlyOwner {
201        require(
202            newAuctionDuration >= MIN_AUCTION_DURATION,
203            "Invalid auction duration"
204        );
205        emit AuctionDurationSet(auctionDuration, newAuctionDuration);
206        auctionDuration = newAuctionDuration;
207    }
208
209    /**
210     * @notice Sets the new strike selection or options premium pricer contract
211     * @param newContract is the address of the new strike selection or options premium pricer contract
212     * @param isStrikeSelection is whether we are setting the strike selection contract
213     */
214    function setStrikeSelectionOrPricer(
215        address newContract,
216        bool isStrikeSelection
217    ) external onlyOwner {
218        require(newContract != address(0), "!newContract");
219        if (isStrikeSelection) {
220            strikeSelection = newContract;
221        } else {
222            optionsPremiumPricer = newContract;
223        }
224    }
225
226    /**
227     * @notice Optionality to set strike price manually
228     * @param strikePrice is the strike price of the new oTokens (decimals = 8)
229     */
230    function setStrikePrice(uint128 strikePrice)
231        external
232        onlyOwner
233        nonReentrant
234    {
235        require(strikePrice > 0, "!strikePrice");
236        overriddenStrikePrice = strikePrice;
237        lastStrikeOverrideRound = vaultState.round;
238    }
239
240    /************************************************
241     *  VAULT OPERATIONS
242     ***********************************************/
243
244    /**
245     * @notice Withdraws the assets on the vault using the outstanding `DepositReceipt.amount`
246     * @param amount is the amount to withdraw in `asset`
247     * @param minETHOut is the min amount of `asset` to recieve for the swapped amount of steth in crv pool
248     */
249    function withdrawInstantly(uint256 amount, uint256 minETHOut)
250        external
251        nonReentrant
252    {
253        Vault.DepositReceipt storage depositReceipt =
254            depositReceipts[msg.sender];
255
256        uint256 currentRound = vaultState.round;
257
258        require(amount > 0, "!amount");
259        require(depositReceipt.round == currentRound, "Invalid round");
260
261        uint256 receiptAmount = depositReceipt.amount;
262        require(receiptAmount >= amount, "Exceed amount");
263
264        // Subtraction underflow checks already ensure it is smaller than uint104
265        depositReceipt.amount = uint104(receiptAmount.sub(amount));
266        vaultState.totalPending = uint128(
267            uint256(vaultState.totalPending).sub(amount)
268        );

JavaScript Tests

Language
Files
Lines
Blanks
Comments
Testing Code
Deployed Code
Complexity
TypeScript
13
15616
2616
509
12491
1607
531

Tests to Code: 12491 / 1607 = 777 %