Algebra V4 Hook Integration Security Audit

Audit Report Revisions

Audit Overview

We were tasked with performing an audit of the Steer Protocol codebase and in particular their Algebra V4 Hook Integration module.

The system implements an automatic liquidity deployment system integrating with Algebra V4 via a pool plugin, incorporating the following features:

• Maintenance of Volatility Oracle
• Algorithmic Deployment of Liquidity Optimally
• Integration of Per-Token EIP-4626 Vaults

Over the course of the audit, we identified a significant flaw in the tick-based calculations of the system for negative tick values in addition to potential vulnerabilities in the formulae implemented throughout the system for the Gaussian Probability Density Function (PDF).

We advise the Steer Protocol 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 Steer Protocol 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 Steer Protocol and consider all outputs of the audit report either safely acknowledged or properly alleviated.

Audit Synopsis

Severity	Identified	Alleviated	Partially Alleviated	Acknowledged
	0	0	0	0
	29	19	0	10
	9	7	0	2
	7	7	0	0
	1	1	0	0

During the audit, we filtered and validated a total of 3 findings utilizing static analysis tools as well as identified a total of 43 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