Manual Review

A thorough line-by-line review was conducted on the codebase to identify potential malfunctions and vulnerabilities in the V2 staking implementation of Colony Lab.

As the project at hand implements a staking implementation composed of multiple contracts, intricate care was put into ensuring that the flow of funds within the system conforms to the specifications and restrictions laid forth within the protocol's specification.

We validated that all state transitions of the system occur within sane criteria and that all rudimentary formulas within the system execute as expected. We pinpointed several design and implementation issues within the system stemming from its convoluted nature which could have had severe ramifications to its overall operation, however, they were conveyed ahead of time to the Colony Lab team to be promptly remediated.

Additionally, the system was investigated for any other commonly present attack vectors such as re-entrancy attacks, mathematical truncations, logical flaws and ERC / EIP standard inconsistencies. The documentation of the project was satisfactory to a certain extent, however, we strongly recommend the documentation of the project to be expanded at certain complex points such as the collateralization system and how it is meant to function as well as the purpose behind the authorized stakers.

A total of 13 findings were identified over the course of the manual review of which 6 findings concerned the behaviour and security of the system. The non-security related findings, such as optimizations, are included in the separate Code Style chapter.

The finding table below enumerates all these security / behavioural findings:

ID	Severity	Addressed	Title
ATN-01M			Improper Collateral System
ASG-01M			Improper Increase of Registered Tokens
ASG-02M			Inexistent Subtraction of Registered Tokens
ASG-03M			Inexplicable Capability of Re-Invocation
TVS-01M			Potential Out-of-Bounds Value Read
TVS-02M			Potentially Unsafe Length Assumption