Omniscia Morpho Labs Audit

Tokenized Vaults Security Audit

Audit Overview

We were tasked with performing an audit of the Morpho codebase and in particular their tokenized vault implementations integrating with the Aave V3 and Compound ecosystem.

Over the course of the audit, we identified certain unsafe casting operations as well as the lack of a slippage system for the EIP-4626 standard that can significantly affect the operation of the vaults.

We advise the Morpho Labs 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 Morpho Labs team provided a new commit hash meant to address the exhibits outlined in the audit report and additionally advised us on certain exhibits they deem as acknowledge-able.

All exhibits have been adequately dealt with and the Morpho Labs team provided supplemental material to nullify one of the exhibits related to Compound integration as well as promised future actions for two exhibits related to slippage issues based on a secondary protocol's audit conclusion.

Contracts Assessed

Audit Synopsis

SeverityIdentifiedAlleviatedPartially AlleviatedAcknowledged
6600
7700
6600
4202
1100

During the audit, we filtered and validated a total of 9 findings utilizing static analysis tools as well as identified a total of 15 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 introduce potential misbehaviours of the system as well as exploits.

pie title Total Issues "Unknown" : 6 "Informational" : 7 "Minor" : 6 "Medium" : 4 "Major" : 1

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