eOracle Target Contracts

Smart Contract Security Assessment

June 21, 2024

SUMMARY​

ABSTRACT​

Dedaub was commissioned to perform a security audit of target contracts of eOracle. The audit covers the two primary contracts, the EOFeedManager and the EOFeedVerifier, and the feed adapter contracts.

BACKGROUND​

The eOracle target contracts consist of two primary smart contracts, the EOFeedManager and the EOFeedVerifier.

The EOFeedManager is responsible for receiving feed updates from whitelisted publishers, verifying them using EOFeedVerifier, and storing the verified data for access by other smart contracts.

The EOFeedVerifier handles the verification process of update payloads, ensuring the integrity and authenticity of the price feed updates. The update payload includes a Merkle root signed by eOracle validators and a Merkle path to the leaf containing the data. The verifier stores the current validator set in its storage and ensures that the Merkle root is signed by a subset of this validator set with sufficient voting power.

SETTING & CAVEATS​

This audit report mainly covers the contracts of the at-the-time private repository Eoracle/target-contracts of the eOracle protocol at commit e2b4f479ff510bb1bf2d2eaf93f4805b87591f20.

Two auditors worked on the codebase for 4 days on the following contracts:

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​

constructor() {
    _disableInitializers();
}

CENTRALIZATION ISSUES​

It is often desirable for DeFi protocols to assume no trust in a central authority, including the protocol’s owner. We list issues that could arise if the protocol owner abuses their powers 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.)

OTHER / ADVISORY ISSUES​

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

function setNewValidatorSet(
    Validator[] calldata newValidatorSet
) external override onlyOwner {
    uint256 length = newValidatorSet.length;
    _currentValidatorSetLength = length;
    _currentValidatorSetHash = keccak256(abi.encode(newValidatorSet));
    uint256 totalPower = 0;
    for (uint256 i = 0; i < length; i++) {
        if (newValidatorSet[i]._address == address(0))
            revert InvalidAddress();
        uint256 votingPower = newValidatorSet[i].votingPower;
        if (votingPower == 0) revert VotingPowerIsZero();
        totalPower += votingPower;
        _currentValidatorSet[i] = newValidatorSet[i];
    }
    _totalVotingPower = totalPower;
    emit ValidatorSetUpdated(_currentValidatorSetLength,
        _currentValidatorSetHash, _totalVotingPower);
}

function currentValidatorSet(
    uint256 index
) external view returns (Validator memory) {
    return _currentValidatorSet[index];
}

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.