Bondex Token and Token Vesting

Smart Contract Security Assessment

Mar 07, 2024

SUMMARY​

ABSTRACT​

Dedaub was commissioned to perform a security audit of the Bondex Token and Bondex Token Vesting protocol.

BACKGROUND​

The Bondex Token is an upgradable ERC20 token with burn and permit functionality. Upon initialisation, the token can be configured to be upgradable by an address with the UPGRADER_ROLE, as well as to mint a specific supply and to give this supply to an initial supply holder address.

The Bondex Token Vesting contract holds a number of tokens for a given address (claimant), and allows the address to claim these funds according to a configurable vesting schedule. In particular the contract can be configured to allow the address to claim a certain percentage of the funds immediately, while the rest of the funds are distributed linearly over a vesting period once the set cliff period has passed. These Vesting contracts are cloned using a Vesting Factory contract, so that each address can have its own Vesting contract.

SETTING & CAVEATS​

This audit report mainly covers the following contracts of the Bondex Token repository at commit number:

bb26f0bce57862d89f67209ee7b42f761a8d47aa

As well as the contracts of the Bondex Token Vesting repository at commit number:

21f214ad7cdb8cb08dd066b51339db32e682da2a

Two auditors worked on the codebase for 2 days on the above two repositories.

Following the audit, the team made some changes to the Bondex Token Vesting repository at the following commit number in order to address the issues identified by the audit:

1dcee236d2979519d1ac46764f1ebc57a754f4f9

The auditors have reviewed the fixes and confirm that they fix the issues marked as resolved in the report below.

The audit’s main target is security threats, i.e., what the community understanding would likely call "hacking", rather than the regular use of the protocol. Functional correctness (i.e. issues in "regular use") is a secondary consideration. Typically it can only be covered if we are provided with unambiguous (i.e. full-detail) specifications of what is the expected, correct behavior. In terms of functional correctness, we often trusted the code’s calculations and interactions, in the absence of any other specification. Functional correctness relative to low-level calculations (including units, scaling and quantities returned from external protocols) is generally most effectively done through thorough testing rather than human auditing.

VULNERABILITIES & FUNCTIONAL ISSUES​

This section details issues affecting the functionality of the contract. Dedaub generally categorizes issues according to the following severities, but may also take other considerations into account such as impact or difficulty in exploitation:

Issue resolution includes “dismissed” or “acknowledged” but no action taken, by the client, or “resolved”, per the auditors.

CRITICAL SEVERITY​

[No critical severity issues]

HIGH SEVERITY​

[No high severity issues]

MEDIUM SEVERITY​

[No medium severity issues]

LOW SEVERITY​

CENTRALIZATION ISSUES​

It is often desirable for DeFi protocols to assume no trust in a central authority, including the protocol’s owner. Even if the owner is reputable, users are more likely to engage with a protocol that guarantees no catastrophic failure even in the case the owner gets hacked/compromised. We list issues of this kind below. (These issues should be considered in the context of usage/deployment, as they are not uncommon. Several high-profile, high-value protocols have significant centralization threats.)

[No centralisation issues]

OTHER / ADVISORY ISSUES​

This section details issues that are not thought to directly affect the functionality of the project, but we recommend considering them.

if ($.config.tgeTime + $.config.cliffDuration < block.timestamp) {
    uint256 timePassed = block.timestamp -
        $.config.tgeTime -
        $.config.cliffDuration;

    if (timePassed >= $.config.vestingDuration) {
        timePassed = $.config.vestingDuration;  // Dedaub: unused variable
        totalClaimable = $.config.totalAmount;
    } else {
        uint256 vestedAmount = (amountExcludingTGE * timePassed) /
            $.config.vestingDuration;

        totalClaimable += vestedAmount;
    }
}

DISCLAIMER​

The audited contracts have been analyzed using automated techniques and extensive human inspection in accordance with state-of-the-art practices as of the date of this report. The audit makes no statements or warranties on the security of the code. On its own, it cannot be considered a sufficient assessment of the correctness of the contract. While we have conducted an analysis to the best of our ability, it is our recommendation for high-value contracts to commission several independent audits, a public bug bounty program, as well as continuous security auditing and monitoring through Dedaub Security Suite.

ABOUT DEDAUB​

Dedaub offers significant security expertise combined with cutting-edge program analysis technology to secure some of the most prominent protocols in DeFi. The founders, as well as many of Dedaub's auditors, have a strong academic research background together with a real-world hacker mentality to secure code. Protocol blockchain developers hire us for our foundational analysis tools and deep expertise in program analysis, reverse engineering, DeFi exploits, cryptography and financial mathematics.