Manual Review

A thorough line-by-line review was conducted on the codebase to identify potential malfunctions and vulnerabilities in Steer Protocol's dynamic fee PancakeSwap hook.

As the project at hand implements an AMM hook, intricate care was put into ensuring that the flow of information 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 multiple noteworthy vulnerabilities within the system which could have had moderate-to-severe ramifications to its overall operation; for more information, kindly consult the audit report's summary as well as the relevant 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 a certain extent, however, we strongly recommend it to be expanded at certain complex points such as the TICK_SCALING_FACTOR and how it was assessed as 2500.

A total of 11 findings were identified over the course of the manual review of which 5 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
DFH-01M			Inexplicable Tick Scaling Factor
DFH-02M			Inexplicable Subtraction of One
DFH-03M			Incorrect Sigmoid Function Input
DFH-04M			Incorrect Value Clamping
DFH-05M			Inexistent Protection of Re-Initialization