Staking System Security Audit

Audit Report Revisions

Audit Overview

We were tasked with performing an audit of the Badai Tech codebase and in particular their staking system.

The project implements an index pool implementation permitting a token to be burned to acquire a portion of the balances that the pool holds.

Additionally, a Synthetix-like staking mechanism is introduced with a novel checkpoint system that permits different rewards to be distributed per period between checkpoints.

Over the course of the audit, we identified a critical issue in the IndexPool implementation that utilized skewed proportions for its distribution mechanism.

We advise the Badai Tech team to closely evaluate all minor-and-above findings identified in the report and promptly remediate them as well as consider all optimizational exhibits identified in the report.

Post-Audit Conclusion

The Badai Tech team iterated through all findings within the report and provided us with a revised commit hash to evaluate all exhibits on.

We evaluated all alleviations performed by Badai Tech and have identified that a particular exhibit might require follow-up remediative action. We advise the Badai Tech team to revisit the following exhibit: IPL-01M

Additionally, the following informational findings remain unaddressed and should be revisited: IPL-04C, BAI-02C, AIK-02C

Post-Audit Conclusion (2ef12e6885)

The Badai Tech team provided us with a new commit hash to evaluate their follow-up remediations for the IPL-01M and IPL-04C exhibits.

We confirmed that the relevant exhibits have been properly addressed in full, and additionally assimilated the new GitHub feedback provided on the BAI-02C and AIK-02C issues within their respective exhibits.

We consider all outputs of the audit report properly consumed by the Badai Tech team with no outstanding remediative action remaining.

Audit Synopsis

Severity	Identified	Alleviated	Partially Alleviated	Acknowledged
	0	0	0	0
	22	21	0	1
	2	2	0	0
	0	0	0	0
	1	1	0	0

During the audit, we filtered and validated a total of 7 findings utilizing static analysis tools as well as identified a total of 18 findings during the manual review of the codebase. We strongly recommend that any minor severity or higher findings are dealt with promptly prior to the project's launch as they can introduce potential misbehaviours of the system as well as exploits.

Total Alleviations

The list below covers each segment of the audit in depth and links to the respective chapter of the report:

• 🎯 Scope
• 💻 Compilation
• 🔍 Static Analysis
• 👁️ Manual Review
• 🖋️ Code Style