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Set Protocol

76%

Previous versions

Process Quality Review (0.8)

Set Protocol

Final score:76%
Date:24 Feb 2022
Audit Process:version 0.8
Author:Nick
PQR Score:76%

PASS

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
Ethereum
Polygon
Optimism
#QuestionAnswer
100%
1.100%
2.100%
3.Yes
4.100%
5.100
94%
6.Yes
7.Yes
8.100%
9.60%
87%
10.100%
11.100%
12.Yes
13.70%
14.No
15.Yes
93%
16.100%
17.50%
43%
18.20%
19.70%
20.70%
21.100%
22.30%
23.40%
24.30%
25.0%
50%
26.100%
27.No
28.No
Total:76%

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

100%

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%

They can be found at https://docs.tokensets.com/developers/contracts/deployed/protocol, as indicated in the Appendix.

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: 100%

Contract CreateTokenSet is used 10+ times a day, 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. Does the protocol have a public software repository? (Y/N)

Answer: Yes

Set uses GitHub

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 261 commits, Set has a strong development history.

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)?

Answer: 100

The team is public.

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

94%

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

Location: https://docs.tokensets.com/

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

Answer: Yes

This protocol's 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: 100%

There is full coverage of deployed contracts by software function documentation.

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 non-explicit traceability between software documentation and implemented code.

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

87%

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

Answer: 100%

Code examples are in the Appendix at the end of this report. As per the SLOC, there is 3301% testing to code (TtC). For every 1 line of deployed code, this protocol has documented testing of 330 lines. This is mind-bogglingly large and is unquestionably the highest I have ever seen in my time as a reviewer. Set should be congratulated for the extensive nature of such testing.

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%

Set 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/Instructions location: https://github.com/SetProtocol/set-protocol-v2#run-contract-tests

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: 70%

No test report was identified, but there is a code coverage report.

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

This protocol 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

This protocol has been deployed to Kovan.

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

93%

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

16. Is the protocol sufficiently audited? (%)

Answer: 100%

Set has been audited twice, both times before launch.

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%

This protocol offers an active bug bounty of $50K

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

43%

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: 20%

Admin control information was poorly documented at this location. This took some looking.

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: 70%

Although Set Protocol's documentation does not clearly state what is immutable or upgradeable, the SetToken contract has upgradeable parameters that can be interacted with via their Controller and BaseManager contracts, making it implicitly upgradeable. However, the BaseManager contract that controls admin functionality indicates the upgradeable parameters of its various contracts, which are also stated in the individual contracts' pages in the Set Protocol documentation.    30% will be deduced due to lack of clarity.

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: 70%

The Set Protocol contracts are owned by the BaseManager and Controller contracts, but it is unclear what kind of access the Set team has to them.    30% is deduced for lack of clarity.

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%

Capabilities for change are described in the BaseManager and Controller contracts' documentation, and also in every single other Set Protocol contract.

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: 40%

This protocol's pause control is documented but not explained in this location.

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: 30%

This protocol has non-specific timelock documentation which can be found at this location.

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%

The timelock is of an unknown length.

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

50%

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%

The protocol's oracle source is well documented at this location. The contracts dependent are well identified. There is relevant software function 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: No

This protocol documents no front running mitigation techniques.

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: No

This protocol documents no flashloan countermeasure consideration.

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

1pragma solidity 0.6.10;
2pragma experimental "ABIEncoderV2";
3
4import { Address } from "@openzeppelin/contracts/utils/Address.sol";
5import { ERC20 } from "@openzeppelin/contracts/token/ERC20/ERC20.sol";
6import { SafeCast } from "@openzeppelin/contracts/utils/SafeCast.sol";
7import { SafeMath } from "@openzeppelin/contracts/math/SafeMath.sol";
8import { SignedSafeMath } from "@openzeppelin/contracts/math/SignedSafeMath.sol";
9
10import { IController } from "../interfaces/IController.sol";
11import { IModule } from "../interfaces/IModule.sol";
12import { ISetToken } from "../interfaces/ISetToken.sol";
13import { Position } from "./lib/Position.sol";
14import { PreciseUnitMath } from "../lib/PreciseUnitMath.sol";
15import { AddressArrayUtils } from "../lib/AddressArrayUtils.sol";
16
17
18/**
19 * @title SetToken
20 * @author Set Protocol
21 *
22 * ERC20 Token contract that allows privileged modules to make modifications to its positions and invoke function calls
23 * from the SetToken. 
24 */
25contract SetToken is ERC20 {
26    using SafeMath for uint256;
27    using SafeCast for int256;
28    using SafeCast for uint256;
29    using SignedSafeMath for int256;
30    using PreciseUnitMath for int256;
31    using Address for address;
32    using AddressArrayUtils for address[];
33
34    /* ============ Constants ============ */
35
36    /*
37        The PositionState is the status of the Position, whether it is Default (held on the SetToken)
38        or otherwise held on a separate smart contract (whether a module or external source).
39        There are issues with cross-usage of enums, so we are defining position states
40        as a uint8.
41    */
42    uint8 internal constant DEFAULT = 0;
43    uint8 internal constant EXTERNAL = 1;
44
45    /* ============ Events ============ */
46
47    event Invoked(address indexed _target, uint indexed _value, bytes _data, bytes _returnValue);
48    event ModuleAdded(address indexed _module);
49    event ModuleRemoved(address indexed _module);    
50    event ModuleInitialized(address indexed _module);
51    event ManagerEdited(address _newManager, address _oldManager);
52    event PendingModuleRemoved(address indexed _module);
53    event PositionMultiplierEdited(int256 _newMultiplier);
54    event ComponentAdded(address indexed _component);
55    event ComponentRemoved(address indexed _component);
56    event DefaultPositionUnitEdited(address indexed _component, int256 _realUnit);
57    event ExternalPositionUnitEdited(address indexed _component, address indexed _positionModule, int256 _realUnit);
58    event ExternalPositionDataEdited(address indexed _component, address indexed _positionModule, bytes _data);
59    event PositionModuleAdded(address indexed _component, address indexed _positionModule);
60    event PositionModuleRemoved(address indexed _component, address indexed _positionModule);
61
62    /* ============ Modifiers ============ */
63
64    /**
65     * Throws if the sender is not a SetToken's module or module not enabled
66     */
67    modifier onlyModule() {
68        // Internal function used to reduce bytecode size
69        _validateOnlyModule();
70        _;
71    }
72
73    /**
74     * Throws if the sender is not the SetToken's manager
75     */
76    modifier onlyManager() {
77        _validateOnlyManager();
78        _;
79    }
80
81    /**
82     * Throws if SetToken is locked and called by any account other than the locker.
83     */
84    modifier whenLockedOnlyLocker() {
85        _validateWhenLockedOnlyLocker();
86        _;
87    }
88
89    /* ============ State Variables ============ */
90
91    // Address of the controller
92    IController public controller;
93
94    // The manager has the privelege to add modules, remove, and set a new manager
95    address public manager;
96
97    // A module that has locked other modules from privileged functionality, typically required
98    // for multi-block module actions such as auctions
99    address public locker;
100
101    // List of initialized Modules; Modules extend the functionality of SetTokens
102    address[] public modules;
103
104    // Modules are initialized from NONE -> PENDING -> INITIALIZED through the
105    // addModule (called by manager) and initialize  (called by module) functions
106    mapping(address => ISetToken.ModuleState) public moduleStates;
107
108    // When locked, only the locker (a module) can call privileged functionality
109    // Typically utilized if a module (e.g. Auction) needs multiple transactions to complete an action
110    // without interruption
111    bool public isLocked;
112
113    // List of components
114    address[] public components;
115
116    // Mapping that stores all Default and External position information for a given component.
117    // Position quantities are represented as virtual units; Default positions are on the top-level,
118    // while external positions are stored in a module array and accessed through its externalPositions mapping
119    mapping(address => ISetToken.ComponentPosition) private componentPositions;
120
121    // The multiplier applied to the virtual position unit to achieve the real/actual unit.
122    // This multiplier is used for efficiently modifying the entire position units (e.g. streaming fee)
123    int256 public positionMultiplier;
124
125    /* ============ Constructor ============ */
126
127    /**
128     * When a new SetToken is created, initializes Positions in default state and adds modules into pending state.
129     * All parameter validations are on the SetTokenCreator contract. Validations are performed already on the 
130     * SetTokenCreator. Initiates the positionMultiplier as 1e18 (no adjustments).
131     *
132     * @param _components             List of addresses of components for initial Positions
133     * @param _units                  List of units. Each unit is the # of components per 10^18 of a SetToken
134     * @param _modules                List of modules to enable. All modules must be approved by the Controller
135     * @param _controller             Address of the controller
136     * @param _manager                Address of the manager
137     * @param _name                   Name of the SetToken
138     * @param _symbol                 Symbol of the SetToken
139     */
140    constructor(
141        address[] memory _components,
142        int256[] memory _units,
143        address[] memory _modules,
144        IController _controller,
145        address _manager,
146        string memory _name,
147        string memory _symbol
148    )
149        public
150        ERC20(_name, _symbol)
151    {
152        controller = _controller;
153        manager = _manager;
154        positionMultiplier = PreciseUnitMath.preciseUnitInt();
155        components = _components;
156
157        // Modules are put in PENDING state, as they need to be individually initialized by the Module
158        for (uint256 i = 0; i < _modules.length; i++) {
159            moduleStates[_modules[i]] = ISetToken.ModuleState.PENDING;
160        }
161
162        // Positions are put in default state initially
163        for (uint256 j = 0; j < _components.length; j++) {
164            componentPositions[_components[j]].virtualUnit = _units[j];
165        }
166    }
167
168    /* ============ External Functions ============ */
169
170    /**
171     * PRIVELEGED MODULE FUNCTION. Low level function that allows a module to make an arbitrary function
172     * call to any contract.
173     *
174     * @param _target                 Address of the smart contract to call
175     * @param _value                  Quantity of Ether to provide the call (typically 0)
176     * @param _data                   Encoded function selector and arguments
177     * @return _returnValue           Bytes encoded return value
178     */
179    function invoke(
180        address _target,
181        uint256 _value,
182        bytes calldata _data
183    )
184        external
185        onlyModule
186        whenLockedOnlyLocker
187        returns (bytes memory _returnValue)
188    {
189        _returnValue = _target.functionCallWithValue(_data, _value);
190
191        emit Invoked(_target, _value, _data, _returnValue);
192
193        return _returnValue;
194    }
195
196    /**
197     * PRIVELEGED MODULE FUNCTION. Low level function that adds a component to the components array.
198     */
199    function addComponent(address _component) external onlyModule whenLockedOnlyLocker {
200        require(!isComponent(_component), "Must not be component");
201        
202        components.push(_component);
203
204        emit ComponentAdded(_component);
205    }
206

JavaScript Tests

Language
Files
Lines
Blanks
Comments
Testing Code
Deployed Code
Complexity
TypeScript
33
47763
9051
971
37741
1143
125

Tests to Code: 37741 / 1143 = 3302 %