Manual Review

A thorough line-by-line review was conducted on the codebase to identify potential malfunctions and vulnerabilities in Pareto's governance system.

As the project at hand implements governance, intricate care was put into ensuring that the voting power calculations within the system conform 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 multiple significant vulnerabilities within the system which could have had moderate to severe ramifications to its overall operation; for more information, kindly consult all non-informational exhibits within the audit report.

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 the extent it need be.

A total of 10 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
PSW-01M			Potential Manipulation of Code Hash
PVG-01M			Insecure Casting of Amounts
VVA-01M			Absence of EIP-5805 Compatibility
VAR-01M			Absence of EIP-5805 Compatibility
VAR-02M			Insecure Default Value of Total Supply Power
VAR-03M			Retroactive Update of Voting Powers