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PoolTogether v4

94%

Previous versions

Process Quality Review (0.8)

PoolTogether v4

Final score:94%
Date:02 Mar 2022
Audit Process:version 0.8
Author:Nick
PQR Score:94%

PASS

Protocol Website:https://pooltogether.com/

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
Polygon
#QuestionAnswer
100%
1.100%
2.100%
3.Yes
4.100%
5.100
100%
6.Yes
7.Yes
8.100%
9.100%
86%
10.100%
11.97%
12.Yes
13.70%
14.No
15.Yes
95%
16.100%
17.60%
89%
18.70%
19.100%
20.100%
21.100%
22.100%
23.100%
24.100%
25.50%
100%
26.100
27.Yes
28.Yes
Total:94%

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.

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://v4.docs.pooltogether.com/protocol/deployments/mainnet/, 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 PrizeDistributor is used 100+ 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

PoolTogether 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 580 commits, PoolTogether's commitment to development history is clearly not left to chance.

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 protocol is decentralized, though key contributors are public and confirm their roles. See our appendix at the end of this review for reference.

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

100%

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://v4.docs.pooltogether.com/protocol/introduction

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

Answer: Yes

This protocol's software architecture is documented in full.

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 complete 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: 100%

There is explicit traceability between software documentation and implemented code. Users can click to see source code from the Smart Contract section.

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

86%

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 276% testing to code (TtC).    This score is guided by the Test to Code ratio (TtC). Generally a good test to code ratio is over 100%. However, the reviewer's 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

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

Answer: 97%

The protocol has 97% 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/pooltogether/v4-core#testing

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%

A code coverage report is detailed.

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 a testnet.

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

95%

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

16. Is the protocol sufficiently audited? (%)

Answer: 100%

This protocol's V4 was audited once before release. In addition, the PoolTogether v4 release implements many elements of the v3 Prize Pool's core software architecture which has been audited multiple times. This can be seen at https://v3.docs.pooltogether.com/security/audits-and-testing.

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: 60%

This protocol offers an active bug bounty of $25K. In addition, Pooltogether v4's code was subject to a $100,000 Code Arena contest. Although this is no longer active, we will still award points for this, as the code was rigorously parsed through by white hats and security enthusiasts.

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

89%

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: 70%

Admin control information was documented at this location. This took some looking. Although this is technically v3 documentation, the information is still valid for the v4 release. Additional v4 launch architecture details can be found at https://dev.pooltogether.com/protocol/architecture/launch-architecture/#defender-bug-or-attack, and further details the non-custodial aspects.

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: 100%

Contracts are not upgradeable as specified by the v3 documentation. The v4 documentation corroborates this by highlighting the non-custodial nature of the deployment. In addition, the team plans to further decentralize the protocol through automation that will further remove the admins' implication from daily operations. This is detailed here, and we will update the review accordingly once the automation is in full effect.

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%

All contracts are not upgradeable. In addition, a MultiSig wallet operates the protocol's OpenZeppelin Defender implementation that is used to automatize transactions.

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%

All contracts are not upgradeable. The only aspect of the protocol that the admins can change are the Prize Distribution details. However, this is only done if there are any discrepancies or mismatches in the aforementioned details.

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: 100%

This information is not in software specific language, and is easy to understand from an investment safety perspective.

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: 100%

Contracts are not upgradeable, therefore disabling any pause capabilities.

Percentage Score Guidance:
100%
If immutable and no changes possible
100%
If admin control is fully via governance
80%
Robust transaction signing process (7 or more elements)
70%
Adequate transaction signing process (5 or more elements)
60%
Weak transaction signing process (3 or more elements)
0%
No transaction signing process evident
Evidence of audits of signers following the process add 20%

24. Is there sufficient Timelock documentation? (%)

Answer: 100%

This protocol has some timelock documentation which can be found at this location. Additional timelock documentation detailing its duration and affected contracts can be found here.

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: 50%

The timelock has a length of 24h, as specified here.

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

The protocol's Chainlink Oracle usage is documented, but it is not clear what role it plays. However, PoolTogether does clearly document its TWAB use and necessary specifications.

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

This protocol documents front running mitigation techniques at this location.

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

PoolTogether's TWAB and 2-week epochs serve as adequate flash loan manipulation mitigation procedures.

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

1
2import "@openzeppelin/contracts/token/ERC20/IERC20.sol";
3import "@openzeppelin/contracts/token/ERC20/utils/SafeERC20.sol";
4import "@openzeppelin/contracts/utils/Address.sol";
5import "@pooltogether/yield-source-interface/contracts/IYieldSource.sol";
6
7import "./PrizePool.sol";
8
9/**
10 * @title  PoolTogether V4 YieldSourcePrizePool
11 * @author PoolTogether Inc Team
12 * @notice The Yield Source Prize Pool uses a yield source contract to generate prizes.
13 *         Funds that are deposited into the prize pool are then deposited into a yield source. (i.e. Aave, Compound, etc...)
14 */
15contract YieldSourcePrizePool is PrizePool {
16    using SafeERC20 for IERC20;
17    using Address for address;
18
19    /// @notice Address of the yield source.
20    IYieldSource public immutable yieldSource;
21
22    /// @dev Emitted when yield source prize pool is deployed.
23    /// @param yieldSource Address of the yield source.
24    event Deployed(address indexed yieldSource);
25
26    /// @notice Emitted when stray deposit token balance in this contract is swept
27    /// @param amount The amount that was swept
28    event Swept(uint256 amount);
29
30    /// @notice Deploy the Prize Pool and Yield Service with the required contract connections
31    /// @param _owner Address of the Yield Source Prize Pool owner
32    /// @param _yieldSource Address of the yield source
33    constructor(address _owner, IYieldSource _yieldSource) PrizePool(_owner) {
34        require(
35            address(_yieldSource) != address(0),
36            "YieldSourcePrizePool/yield-source-not-zero-address"
37        );
38
39        yieldSource = _yieldSource;
40
41        // A hack to determine whether it's an actual yield source
42        (bool succeeded, bytes memory data) = address(_yieldSource).staticcall(
43            abi.encodePacked(_yieldSource.depositToken.selector)
44        );
45        address resultingAddress;
46        if (data.length > 0) {
47            resultingAddress = abi.decode(data, (address));
48        }
49        require(succeeded && resultingAddress != address(0), "YieldSourcePrizePool/invalid-yield-source");
50
51        emit Deployed(address(_yieldSource));
52    }
53
54    /// @notice Sweeps any stray balance of deposit tokens into the yield source.
55    /// @dev This becomes prize money
56    function sweep() external nonReentrant onlyOwner {
57        uint256 balance = _token().balanceOf(address(this));
58        _supply(balance);
59
60        emit Swept(balance);
61    }
62
63    /// @notice Determines whether the passed token can be transferred out as an external award.
64    /// @dev Different yield sources will hold the deposits as another kind of token: such a Compound's cToken.  The
65    /// prize strategy should not be allowed to move those tokens.
66    /// @param _externalToken The address of the token to check
67    /// @return True if the token may be awarded, false otherwise
68    function _canAwardExternal(address _externalToken) internal view override returns (bool) {
69        IYieldSource _yieldSource = yieldSource;
70        return (
71            _externalToken != address(_yieldSource) &&
72            _externalToken != _yieldSource.depositToken()
73        );
74    }
75
76    /// @notice Returns the total balance (in asset tokens).  This includes the deposits and interest.
77    /// @return The underlying balance of asset tokens
78    function _balance() internal override returns (uint256) {
79        return yieldSource.balanceOfToken(address(this));
80    }
81
82    /// @notice Returns the address of the ERC20 asset token used for deposits.
83    /// @return Address of the ERC20 asset token.
84    function _token() internal view override returns (IERC20) {
85        return IERC20(yieldSource.depositToken());
86    }
87
88    /// @notice Supplies asset tokens to the yield source.
89    /// @param _mintAmount The amount of asset tokens to be supplied
90    function _supply(uint256 _mintAmount) internal override {
91        _token().safeIncreaseAllowance(address(yieldSource), _mintAmount);
92        yieldSource.supplyTokenTo(_mintAmount, address(this));
93    }
94
95    /// @notice Redeems asset tokens from the yield source.
96    /// @param _redeemAmount The amount of yield-bearing tokens to be redeemed
97    /// @return The actual amount of tokens that were redeemed.
98    function _redeem(uint256 _redeemAmount) internal override returns (uint256) {
99        return yieldSource.redeemToken(_redeemAmount);
100    }
101}
N/A