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Preparing a smart contract for release on Web3

Client:
Small smart contract development company
Industry:
Fintech / Blockchain
Focus:
Verification of the token and exchange smart contract before release
Main challenge:
Identifying vulnerabilities in the code and preparing the smart contract for certification to be listed on Web3 exchanges
Market:
International
Services provided:
Smart contract audit (White-box source code review)
Key Takeaways
  • The code was prepared for certification.
  • The project was secured against 99% of known threats.
  • Transaction testing was carried out in a simulated environment.
  • Static analysis and line-by-line review of the source code were performed.
  • 2 medium and 3 informational vulnerabilities were identified and eliminated.
  • Detailed recommendations for system optimization were provided.
  • 5
    Vulnerabilities found
    14
    Days of audit
    99 %
    Protection against threats
    Preparing a smart contract for release on Web3
    An error in the code of a smart contract that enables financial operations on the blockchain can be catastrophic for a business and lead to the loss of all assets. Acknowledging this, the company developing the token and exchange smart contract turned to Datami for a comprehensive audit before launching on Web3. As a result of the review, we identified 5 vulnerabilities that were eliminated in advance.

    A case of a small company developing solutions for the Web3 sphere, which was preparing to launch a token and exchange smart contract on international exchanges in the Ethereum ecosystem.

    When working with financial assets on the blockchain, security is the foundation of the project, since a single code vulnerability can lead to the complete loss of funds. Not only the company but also its users are placed in the zone of financial risk.

    Tasks and challenges
    The client turned to Datami to conduct a full audit of the token and exchange smart contract before release.
     
    It was necessary within 14 days to check for vulnerabilities and prepare the product for certification to enter international Web3 exchanges.
    • Conduct a full audit of the code and processes.
    • Identify and describe potential threats.
    • Prepare a report with recommendations for strengthening the project’s security.
    icon
    Manual testing
    Linear code analysis and verification of smart contract logic
    icon
    Automated verification
    On-chain testing in a simulated environment and static analysis
    icon
    Final report
    Detailed description of results and recommendations for code improvement
    Our approach

    In this project, Datami applied a White-box strategy to conduct a smart contract audit, which included dynamic on-chain analysis, as well as static and manual code review for vulnerability patterns.

    Testing was carried out in Remix and Ropsten testnet environments. To detect errors and vulnerabilities in the code, tools such as MythX, Manticore, Slither, SolHint, Cloc, and Oyente were used.

    White-box
    White-box
    An approach to smart contract auditing with full access to the source code for comprehensive security verification
    Key project stages

    Work on auditing the token and exchange smart contract required maximum speed and coordination due to the limited time for preparation before entering the exchange. After preparing the environment, the team conducted transaction simulation on a test blockchain, static analysis, and manual line-by-line review. In conclusion, we prepared a report and recommendations.

    • Preparation
      Review of technical documentation and specifications, code compilation in Remix, and deployment on a test blockchain.
    • Code audit
      Detailed verification of transactions in a simulated on-chain environment, static analysis, and manual line-by-line review of the source code.
    • Report and solutions
      The client received a document with the audit results and detailed recommendations for improving and optimizing the smart contract.
    How we can help you?

    Every cybersecurity case study we solve involves deep analysis, tailored solutions, and measurable results.
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    Results and recommendations
    Results and recommendations

    During the smart contract review, we identified 5 vulnerabilities (2 medium and 3 informational), including:

    • incorrect order of arithmetic operations;
    • use of a floating pragma version;
    • shadowing of local variables.

    No critical issues were found.

    In the course of the project, a decision was made to optimize and modernize parts of the code to meet current requirements. The client implemented our proposed changes, which ensured protection against 99% of known attacks and allowed the system to be prepared for certification and launch.

    As a result, the client received:

    • a report on the audit results and an understanding of the code security status;
    • reduced risks of asset loss and loss of control over the smart contract;
    • confidence and protection against financial and reputational risks;
    • compliance with security standards after implementing the recommendations;
    • readiness for a safe launch into Web3.

    All tasks were completed on time and in full.

    Our certificates
    Key project results

    The client sought to ensure the reliability and compliance of their smart contract with modern security standards, since any error in the source code could lead to the loss of user assets and even the complete collapse of the system.

    Thanks to Datami’s comprehensive audit, the client improved the code in advance, gained confidence in the security of their solution, and achieved readiness for a safe launch into Web3.

    This case is a clear confirmation of the necessity of security verification before launch, as it is impossible to fix vulnerabilities in a smart contract after release.

    Category
    Before the project
    After implementation
    Security level
    Medium
    High, protection against 99% of known attacks
    Threat level
    Low
    Minimal
    Risks
    Loss of assets and control over the smart contract
    Minimized
    Vulnerabilities
    Unknown
    5 non-critical issues found and fixed
    Compliance with exchange standards
    No
    Yes
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