EasyFi Staking

Contracts
Smart Contract Security Audit

Prepared by: Halborn

Date of Engagement: June 14th - 18th, 2021
Visit: Halborn.com
DOCUMENT REVISION HISTORY 4
CONTACTS 4
1 EXECUTIVE OVERVIEW 5
1.1 INTRODUCTION 6
1.2 AUDIT SUMMARY 6
1.3 TEST APPROACH & METHODOLOGY 7
RISK METHODOLOGY 7
1.4 SCOPE 9
2 ASSESSMENT SUMMARY & FINDINGS OVERVIEW 10
3 FINDINGS & TECH DETAILS 11

3.1 (HAL-01) PRAGMA VERSION DEPRECATED - LOW 13

Description 13

Code Location 13

Risk Level 13

Recommendations 13

Remediation Plan 13

3.2 (HAL-02) FLOATING PRAGMA - LOW 14

Description 14

Code Location 14

Risk Level 14

Recommendations 14

Remediation Plan 14

3.3 (HAL-03) MISSING BOUND CHECK - INFORMATIONAL 15

Description 15

1
 Code Location 15

Risk Level 16

Recommendation 16

Remediation Plan 17

3.4 (HAL-04) INTEGER OVERFLOW - INFORMATIONAL 18

Description 18

Code Location 18

Risk Level 19

Recommendation 19

Remediation Plan 20

3.5 (HAL-05) NO TEST COVERAGE - INFORMATIONAL 21

Description 21

Risk Level 21

Recommendation 21

Remediation Plan 21

3.6 (HAL-06) DOCUMENTATION - INFORMATIONAL 22

Description 22

Recommendation 22

Remediation Plan 22
4 AUTOMATED TESTING 23
4.1 STATIC ANALYSIS REPORT 24

Description 24

Results 24
4.2 AUTOMATED SECURITY SCAN 25

Description 25

Results 25

2
3
 DOCUMENT REVISION HISTORY

VERSION MODIFICATION DATE AUTHOR

0.1 Document Creation 06/10/2021 Khaled Sakr

0.2 Document Edits 06/13/2021 Khaled Sakr

1.0 Final Draft 06/13/2021 Gabi Urrutia

1.1 Remediation Plan 06/25/2021 Gabi Urrutia

CONTACTS

CONTACT COMPANY EMAIL

Rob Behnke Halborn [email protected]

Steven Walbroehl Halborn [email protected]

Gabi Urrutia Halborn [email protected]

Khaled Sakr Halborn [email protected]

4
EXECUTIVE OVERVIEW

5
 1.1 INTRODUCTION
stakingFactory is the staking implementation done by EasyFi. EasyFi
engaged Halborn to conduct a security audit on their stakingFactory smart
contract beginning on June 14th, 2021 and ending June 18th, 2021. The
security assessment was scoped to the smart contract provided in the
Github repository EasyFi Staking Smart Contract.

Though this security audit’s outcome is satisfactory, only the most

essential aspects were tested and verified to achieve objectives and
deliverable set in the scope due to time and resource constraints. It is
essential to note the use of the best practices for secure smart-contract
development.

1.2 AUDIT SUMMARY

The team at Halborn was provided one week for the engagement and assigned
a full time security engineer to audit the security of the smart con-
tract. The security engineer are blockchain and smart-contract security
expert with advanced penetration testing, smart-contract hacking, and
deep knowledge of multiple blockchain protocols.
EXECUTIVE OVERVIEW

The purpose of this audit to achieve the following:

• Ensure that smart contract functions are intended.

• Identify potential security issues with the smart contracts.

In summary, Halborn identified few security risks, and recommends per-

forming further testing to validate extended safety and correctness in
context to the whole set of contracts. External threats, such as economic
attacks, oracle attacks, and inter-contract functions and calls should
be validated for expected logic and state.

6
 1.3 TEST APPROACH & METHODOLOGY
Halborn performed a combination of manual and automated security testing
to balance efficiency, timeliness, practicality, and accuracy in regard to
the scope of the smart contract audit.While manual testing is recommended
to uncover flaws in logic, process,and implementation; automated testing
techniques help enhance coverage of smart contracts and can quickly
identify items that do not follow security best practices. The following
phases and associated tools were used throughout the term of the audit:

• Research into architecture and purpose.

• Smart Contract manual code read and walkthrough.
• Graphing out functionality and contract logic/connectivity/func-
tions(solgraph)
• Manual Assessment of use and safety for the critical Solidity vari-
ables and functions in scope to identify any arithmetic related
vulnerability classes.
• Static Analysis of security for scoped contract, and imported func-
tions.(Slither)
• Testnet deployment (Truffle, Ganache)

RISK METHODOLOGY:
EXECUTIVE OVERVIEW

Vulnerabilities or issues observed by Halborn are ranked based on the

risk assessment methodology by measuring the LIKELIHOOD of a security in-
cident, and the IMPACT should an incident occur. This framework works for
communicating the characteristics and impacts of technology vulnerabili-
ties. It’s quantitative model ensures repeatable and accurate measurement
while enabling users to see the underlying vulnerability characteristics
that was used to generate the Risk scores. For every vulnerability, a
risk level will be calculated on a scale of 5 to 1 with 5 being the
highest likelihood or impact.

RISK SCALE - LIKELIHOOD

5 - Almost certain an incident will occur.

4 - High probability of an incident occurring.

7
 3 - Potential of a security incident in the long term.
2 - Low probability of an incident occurring.
1 - Very unlikely issue will cause an incident.

RISK SCALE - IMPACT

5 - May cause devastating and unrecoverable impact or loss.

4 - May cause a significant level of impact or loss.
3 - May cause a partial impact or loss to many.
2 - May cause temporary impact or loss.
1 - May cause minimal or un-noticeable impact.

The risk level is then calculated using a sum of these two values, creating
a value of 10 to 1 with 10 being the highest level of security risk.

CRITICAL HIGH MEDIUM LOW INFORMATIONAL

10 - CRITICAL
9 - 8 - HIGH
7 - 6 - MEDIUM
5 - 4 - LOW
3 - 1 - VERY LOW AND INFORMATIONAL
EXECUTIVE OVERVIEW

8
 1.4 SCOPE
IN-SCOPE:
Code related to staking/stakingFactory.sol smart contract.

Specific commit of contract:

6d3548851c6499c2a1ea12f8a7393b0b4f34304d

Fixed commit ID:

e2b4cd89c75ce9171007bd241859aabf2adf633c

OUT-OF-SCOPE: External libraries and economics attacks

EXECUTIVE OVERVIEW

9
 2. ASSESSMENT SUMMARY & FINDINGS
OVERVIEW

CRITICAL HIGH MEDIUM LOW INFORMATIONAL

0 0 0 2 4

LIKELIHOOD
IMPACT

(HAL-01)
(HAL-02)

(HAL-03)
EXECUTIVE OVERVIEW

(HAL-04)
(HAL-05)

(HAL-06)

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 SECURITY ANALYSIS RISK LEVEL REMEDIATION DATE

PRAGMA VERSION DEPRECATED Low SOLVED - 06/25/2021

FLOATING PRAGMA Low SOLVED - 06/25/2021

MISSING BOUND CHECK Informational RISK ACCEPTED

INTEGER OVERFLOW Informational RISK ACCEPTED

NO TEST COVERAGE Informational SOLVED - 06/25/2021

DOCUMENTATION Informational SOLVED - 06/25/2021

EXECUTIVE OVERVIEW

11
FINDINGS & TECH
DETAILS

12
 3.1 (HAL-01) PRAGMA VERSION
DEPRECATED - LOW
Description:

The current version in use for the contract is pragma ^0.5.16. While this
version is still functional, and most security issues safely implemented
by mitigating contracts with other utility contracts such as SafeMath.sol
and ReentrancyGuard.sol, the risk to the long-term sustainability and
integrity of the solidity code increases.

Code Location:

Listing 1: stakingFactory.sol (Lines 1)

1 pragma solidity ^0.5.16;
2
3 /* *
FINDINGS & TECH DETAILS

Risk Level:

Likelihood - 1
Impact - 3

Recommendations:

At the time of this audit, the current version is already at 0.8.6.

When possible, use the most updated and tested pragma versions to take
advantage of new features that provide checks and accounting, as well as
prevent insecure use of code. (0.6.12)

Remediation Plan:

SOLVED: Pragma version was upgraded to 0.7.6.

13
 3.2 (HAL-02) FLOATING PRAGMA - LOW
Description:

Smart contract stakingFactory.sol uses the floating pragma ^0.5.16.

Locking the pragma helps to ensure that contracts do not accidentally
get deployed using another pragma. For example, an outdated pragma
version might introduce bugs that affect the contract system negatively
or recently released pragma versions may have unknown security
vulnerabilities.

Code Location:

Listing 2: stakingFactory.sol (Lines 1)

1 pragma solidity ^0.5.16;
2
3 /* *
FINDINGS & TECH DETAILS

Risk Level:

Likelihood - 1
Impact - 3

Recommendations:

Consider locking the pragma version. It is not recommended to use a

floating pragma in production. Apart from just locking the pragma version
in the code, the sign (^) need to be removed. It is possible to lock
the pragma by fixing the version both in truffle-config.js for Truffle
framework or in hardhat.config.js for HardHat framework.

Remediation Plan:

SOLVED: Pragma version was locked to 0.7.6.

14
 3.3 (HAL-03) MISSING BOUND CHECK -
INFORMATIONAL
Description:

In notifyRewardAmount() function, rewardRate is calculated dividing

reward by RewardDuration. In addition, reward.add(leftover) is divided
by rewardsDuration to calculate rewardRate as well. If both denominators
are greater than the numerators, rewardRate leads to 0.

Code Location:

Listing 3: stakingFactory.sol (Lines 1)

619 function notifyRewardAmount ( uint256 reward ) external
onlyRewardsDistribution updateReward ( address (0) ) {
620
621 if ( block . timestamp >= periodFinish ) {
622
623 rewardRate = reward . div ( rewardsDuration );
FINDINGS & TECH DETAILS

624
625 } else {
626
627 uint256 remaining = periodFinish . sub ( block . timestamp );
628
629 uint256 leftover = remaining . mul ( rewardRate ) ;
630
631 rewardRate = reward . add ( leftover ) . div ( rewardsDuration )
;
632
633 }
634
635
636
637 // Ensure the provided reward amount is not more than the
balance in the contract .
638
639 // This keeps the reward rate in the right range ,
preventing overflows due to
640

15
 641 // very high values of rewardRate in the earned and
rewardsPerToken functions ;
642
643 // Reward + leftover must be less than 2^256 / 10^18 to
avoid overflow .
644
645 uint balance = rewardsToken . balanceOf ( address ( this ) ) ;
646
647 require ( rewardRate <= balance . div ( rewardsDuration ) , "
Provided reward too high ") ;
648
649
650
651 lastUpdateTime = block . timestamp ;
652
653 periodFinish = block . timestamp . add ( rewardsDuration ) ;
654
655 emit RewardAdded ( reward );
656
657 }

Risk Level:
FINDINGS & TECH DETAILS

Likelihood - 1
Impact - 2

Recommendation:

Consider adding modifiers for bound checks such as:

Listing 4
1 require ( reward >= rewardsDuration , " Reward is too small ") ;

Listing 5
1 require ( reward . add ( leftover ) >= rewardsDuration , " Reward is too
small ") ;

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 Remediation Plan:

RISK ACCEPTED: rewardsDuration is based on UNIX timestamp and reward is

in wei(token with decimals 6,8,18 includes). Rewards will never be less
than 1000 Tokens. With least case (Reward token with 6 decimals and
duration for one year) 1,000,000,000 will be greater than 31,556,952(for
1 year).
FINDINGS & TECH DETAILS

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 3.4 (HAL-04) INTEGER OVERFLOW -
INFORMATIONAL
Description:

An overflow happens when an arithmetic operation reaches the maximum size

of a type. If the reward is higher than uint(-1).div(1e18) could happen
an overflow. In computer programming, an integer overflow occurs when an
arithmetic operation attempts to create a numeric value that is outside
of the range that can be represented with a given number of bits -- either
larger than the maximum or lower than the minimum representable value.

Code Location:

Listing 6: stakingFactory.sol (Lines 1)

619 function notifyRewardAmount ( uint256 reward ) external
onlyRewardsDistribution updateReward ( address (0) ) {
620
621 if ( block . timestamp >= periodFinish ) {
FINDINGS & TECH DETAILS

622
623 rewardRate = reward . div ( rewardsDuration );
624
625 } else {
626
627 uint256 remaining = periodFinish . sub ( block . timestamp );
628
629 uint256 leftover = remaining . mul ( rewardRate ) ;
630
631 rewardRate = reward . add ( leftover ) . div ( rewardsDuration )
;
632
633 }
634
635
636
637 // Ensure the provided reward amount is not more than the
balance in the contract .
638

18
 639 // This keeps the reward rate in the right range ,
preventing overflows due to
640
641 // very high values of rewardRate in the earned and
rewardsPerToken functions ;
642
643 // Reward + leftover must be less than 2^256 / 10^18 to
avoid overflow .
644
645 uint balance = rewardsToken . balanceOf ( address ( this ) ) ;
646
647 require ( rewardRate <= balance . div ( rewardsDuration ) , "
Provided reward too high ") ;
648
649
650
651 lastUpdateTime = block . timestamp ;
652
653 periodFinish = block . timestamp . add ( rewardsDuration ) ;
654
655 emit RewardAdded ( reward );
656
657 }
FINDINGS & TECH DETAILS

Risk Level:

Likelihood - 1
Impact - 2

Recommendation:

Although SafeMath library is used, consider adding the following modifier

as well to prevent the overflow:

Listing 7
1 require ( reward < uint ( -1) . div (1 e18 ) , " Reward overflow ") ;

19
 Remediation Plan:

RISK ACCEPTED: rewardAmount is set in Factory contract at deployment.

Then, it can never be greater than uint ( -1) . div (1 e18 ).
FINDINGS & TECH DETAILS

20
 3.5 (HAL-05) NO TEST COVERAGE -
INFORMATIONAL
Description:

Unlike traditional software, smart contracts can not be modified unless

deployed using a proxy contract. Because of the permanence, unit tests
and functional testing are recommended to ensure the code works correctly
before deployment. Mocha and Chai are valuable tools to perform unit
tests in smart contracts. Mocha is a Javascript testing framework for
creating synchronous and asynchronous unit tests, and Chai is a library
with assertion functionality such as assert or expect and should be used
to develop custom unit tests.

References:
https://github.com/mochajs/mocha
https://github.com/chaijs/chai
https://docs.openzeppelin.com/learn/writing-automated-tests
FINDINGS & TECH DETAILS

Risk Level:

Likelihood - 1
Impact - 2

Recommendation:

We recommend performing as many test cases as possible to cover all

conceivable scenarios in the smart contract.

Remediation Plan:

SOLVED: EasyFi Team added test coverage.

21
 3.6 (HAL-06) DOCUMENTATION -
INFORMATIONAL
Description:

The documentation provided by the EasyFi team is not complete. For

instance, the documentation included in the GitHub repository should
include a walkthrough to deploy and test the smart contracts.

Recommendation:

Consider updating the documentation in Github for greater ease when

contracts are deployed and tested. Have a Non-Developer or QA resource
work through the process to make sure it addresses any gaps in the set-up
steps due to technical assumptions.

Remediation Plan:
FINDINGS & TECH DETAILS

SOLVED: EasyFi Team documented all deployment stage.

22
AUTOMATED TESTING

23
 4.1 STATIC ANALYSIS REPORT
Description:

Halborn used automated testing techniques to enhance coverage of certain

areas of the scoped contract. Among the tools used was Slither, a Solidity
static analysis framework. After Halborn verified all the contracts in the
repository and was able to compile them correctly into their abi and binary
formats. This tool can statically verify mathematical relationships
between Solidity variables to detect invalid or inconsistent usage of the
contracts’ APIs across the entire code-base.

Results:

The finding can be considered a false positive, because mathematical

operations are well implemented.
AUTOMATED TESTING

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 4.2 AUTOMATED SECURITY SCAN
Description:

Halborn used automated security scanners to assist with detection of

well-known security issues, and to identify low-hanging fruit on the
targets for this engagement. Among the tools used was MythX, a security
analysis service for Ethereum smart contracts. MythX performed a scan
on the testers machine and sent the compiled results to the analyzers
to locate any vulnerabilities. Only security-related findings are shown
below.

Results:
AUTOMATED TESTING

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