Minterest Completes Comprehensive Security Audit with PeckShield

Minterest is pleased to announce the successful completion of its comprehensive security audit, conducted by the renowned blockchain security firm, PeckShield. This audit, completed on August 18, 2024, covered the core functionality of the Minterest protocol, with a special focus on the smart contracts that underpin the Minterest lending system. The audit’s findings further strengthen Minterest’s commitment to delivering a secure, transparent, and high-performing decentralised finance (DeFi) platform.

Overview of the Audit

PeckShield, a leading cybersecurity firm specialising in blockchain security and smart contract auditing, conducted a rigorous review of the Minterest protocol’s smart contracts. The goal of the audit was to identify potential security vulnerabilities, performance issues, and architectural weaknesses that could impact the safety and efficiency of the platform. The audit process covered key areas such as:

• Minterest Core Contracts: These contracts handle the essential functionalities of the protocol, including lending, borrowing, liquidation processes, and fee distribution.
• MUSDY and USDY Contracts: PeckShield thoroughly reviewed the contracts responsible for handling the Minterest-stablecoins, ensuring their stability and security within the protocol.

Audit Methodology

PeckShield’s audit methodology is highly regarded within the blockchain community for its thoroughness and precision. The audit process included:

1. Automated Code Scanning: PeckShield used advanced automated tools to scan the Minterest codebase for known vulnerabilities such as reentrancy attacks, overflow/underflow issues, and unauthorised access exploits.
2. Manual Code Review: Following the automated scan, the PeckShield team manually reviewed the code to ensure that complex and nuanced vulnerabilities were also identified. This process included an analysis of business logic, system operations, and potential DeFi-related vulnerabilities.
3. Cross-Platform Testing: The audit involved testing the protocol across multiple scenarios to ensure that the contracts operate as intended under different conditions, including stress testing of liquidation mechanisms and reward distributions.

Key Findings and Resolutions

The audit identified no critical or high-severity vulnerabilities, which is a strong indicator of the robustness of the Minterest protocol. However, a few medium- and low-severity issues were noted, all of which have been addressed by the Minterest team. Here are some of the most significant findings:

1. Constructor Logic Enhancements (Medium Severity)

• Issue: PeckShield flagged an issue related to constructor logic that could lead to unexpected behaviour during the contract initialization phase.
• Resolution: Minterest updated the constructor logic to ensure that all initial parameters are correctly validated, thus preventing any unintended misconfigurations when deploying new contracts.

2. Boost Factor Calculations (Low Severity)

• Issue: An issue was identified in the boost factor calculations that could result in inaccurate reward distribution among users.
• Resolution: The team recalibrated the boost factor algorithm to ensure precise calculations, ensuring that users receive the correct rewards based on their participation in the protocol.

3. Handling of Non-ERC20 Tokens (Low Severity)

• Issue: Some tokens that do not fully adhere to the ERC-20 standard posed a risk of causing operational issues when interacting with the protocol.
• Resolution: The smart contracts were adjusted to account for tokens with non-standard behaviours, ensuring smooth interaction and preventing errors.

4. Admin Key Management (Medium Severity)

• Issue: Potential risks associated with the management of admin keys were highlighted, which could have led to centralization concerns if not properly handled.
• Resolution: The admin key management process was restructured to follow best practices, ensuring that no single entity holds disproportionate control over the protocol. A multi-signature system was implemented to further decentralize control.

5. Liquidation Process with External Exchanges (Low Severity)

• Issue: Minor vulnerabilities were noted in the liquidation processes, particularly when interacting with external decentralised exchanges (DEXs).
• Resolution: The liquidation processes were fine-tuned, with additional safeguards introduced to ensure smooth liquidation flows, even in volatile market conditions.

Benefits to Minterest Users

By addressing the issues identified in the audit, Minterest has reinforced the platform’s security and reliability. The key benefits to users include:

• Enhanced Security: With the identified vulnerabilities resolved, users can feel confident in the security of their assets when using the Minterest protocol.
• Improved Stability: The refinements in reward distribution and liquidation processes ensure that the protocol operates smoothly even in stressful market conditions.
• Increased Transparency: The updated admin key management structure enhances decentralisation and transparency, making Minterest a more community-driven platform.

Ongoing Commitment to Security

This comprehensive audit by PeckShield is part of Minterest’s ongoing commitment to providing a secure and resilient DeFi platform. While the audit has concluded successfully, Minterest will continue to engage with third-party security firms for regular audits and updates as the protocol evolves. This ensures that users can interact with the platform with peace of mind, knowing that Minterest is committed to maintaining the highest standards of security.

What’s Next?

With the audit complete and all identified issues resolved, Minterest is poised to continue its mission of delivering a high-performance, user-centric DeFi platform. Users can expect future enhancements, new token markets, and continued innovations to provide even greater opportunities for yield generation and governance participation.

Conclusion

Minterest’s successful audit completion highlights its dedication to security, transparency, and innovation. As the platform grows and adds new features, Minterest remains focused on ensuring that its users have a safe and rewarding experience. By engaging trusted partners like PeckShield and continually refining its protocols, Minterest is setting the standard for security in the decentralised finance space.

For more details on the PeckShield audit, you can access the full report here.

Thank you for your continued trust and support as we work towards building the future of DeFi together.

12, September 2024