DeFi Audits & Smart Contract Security — CyberDudeBivash Field Guide

1) Audit Objectives (what “secure” really means)

  • Safety: no loss of funds, no stuck funds, no griefing.
  • Liveness: protocol can progress (no perma-pauses, deadlocks).
  • Economic soundness: incentive compatibility, oracle & MEV resilience.
  • Governance safety: upgrade, pause, and treasury powers are bounded, transparent, and time-locked.
  • Operational resilience: monitoring, incident response, and key management exist and are tested.

2) Pre-Audit Readiness (save 30–50% audit time)

  • Freeze scope + tag: commit hash, compiler version, networks, dependencies.
  • Threat model: actors (user, LP, keeper, governor), trust assumptions, invariants (e.g., total supply, collateralization).
  • Docs: architecture, state machines, role matrix, admin runbooks, upgradability plan.
  • Tests ≥ 95% critical paths: unit + integration + fuzz; include invariants.
  • Static analyzers clean: Slither, Mythril, Semgrep, Solhint.
  • Gas profiling: ensure no DoS-by-gas surprises.

3) Auditor Workflow (what we actually do)

  1. Recon: map contracts, storage, privileges, upgrade/proxy layout.
  2. Static analysis & linters: triage smells and anti-patterns.
  3. Manual review: line-by-line with invariants at hand.
  4. Property testing / fuzzing: Foundry/echidna invariants; randomized sequences.
  5. Economic & oracle review: price manipulation, TWAP windows, liquidity depth.
  6. Governance checks: timelocks, emergency stops, access control, multisig thresholds.
  7. Post-audit validation: fixes re-checked; diff-based final pass.

4) Top Vulnerability Classes (and quick fixes)

  • Reentrancy: use checks-effects-interactionsReentrancyGuard, pull payments; avoid untrusted callbacks before state updates.
  • Access control drift: centralize with onlyRole, explicit role docs, AccessControl, timelocks for sensitive ops.
  • Math/precision: use unchecked only with proofs; prefer mulDiv (full-precision), validate rounding.
  • Oracle manipulation: use medianizers/TWAP; require min liquidity & staleness checks; fail closed on bad feeds.
  • Upgrade/proxy bricking: lock implementation; transparent vs UUPS correctly; restrict upgrade to multisig + timelock.
  • Allowance race (ERC-20): recommend increaseAllowance/permit; zero-first pattern in UIs.
  • Unchecked external calls: validate return values; limit gas stipends; whitelist targets if using call.
  • Signature replay: include chainId, domain separators, nonces; expire signatures.
  • Denial-of-Service by loops: cap loop length; use mappings/queues; batch with bounds.
  • Front-running / MEV: commit-reveal, cool-downs, slippage bounds, uniform clearing auctions where feasible.
  • Bridge & cross-chain: verify message origin, replay protection, rate-limits, emergency circuit-breakers.

5) Secure Solidity Patterns (mini-snippets)

Access control + timelocked upgrade

contract Governed is AccessControl {
    bytes32 public constant GOV = keccak256("GOV");
    TimelockController public immutable timelock;

    constructor(address _multisig, uint256 delay)
        { _grantRole(GOV, _multisig); timelock = new TimelockController(delay, [_multisig], [_multisig]); }

    function upgrade(address newImpl) external onlyRole(GOV) {
        require(timelock.isOperationReady(keccak256(abi.encode(newImpl))), "TL!");
        _upgradeTo(newImpl);
    }
}

Oracle sanity checks

function _readPrice() internal view returns (uint256 px) {
    (, int256 ans,, uint256 updatedAt,) = feed.latestRoundData();
    require(updatedAt + 30 minutes >= block.timestamp, "STALE");
    require(ans > 0, "NEG");
    px = uint256(ans);
    require(px >= MIN_PX && px <= MAX_PX, "OOB");
}

Pull-payment to avoid reentrancy

mapping(address=>uint256) public credits;
function withdraw() external nonReentrant {
    uint256 amt = credits[msg.sender];
    credits[msg.sender] = 0;
    (bool ok,) = msg.sender.call{value: amt}("");
    require(ok,"XFER");
}


6) Testing That Catches Real Bugs

  • Foundry fuzz invariants: balances never negative; sum of shares == total; collateral ratio ≥ MCR.
  • Property examples: “redeem then deposit leaves totalSupply unchanged”, “fees ≤ cap”, “oracle update never decreases timestamp”.
  • Differential testing: compare against reference AMM/math lib (e.g., Uniswap v2/v3 libraries).
  • Fork-tests: simulate mainnet liquidity/MEV; attempt sandwich, oracle skew, flash-loan manipulations.

7) Upgrades, Pauses & Incident Response

  • Multisig + timelock: upgrades, parameter changes. Emergencies can pause, but unpause via timelock.
  • Runbooks: who pages whom; T-0 containment, T-1h comms, T-24h post-mortem outline.
  • Kill-switch scope: pause trading but allow withdrawals if safe; pre-commit policy in docs.

8) Monitoring & On-chain Alerts

  • Health checks: watchdog for price staleness, reserves deltas, abnormal mint/burn.
  • Alerts: large transfers, admin calls, upgrade events, pauser triggers.
  • Analytics: Dune/Nansen dashboards; invariant drift alarms.
  • Off-chain logs: ship node + relayer logs to SIEM; keep chain reorg awareness.

9) Bug Bounty & Responsible Disclosure

  • Launch after audit; tiered rewards, on-chain program link, clear SLA.
  • Safe harbor language; exclude known “intended behavior” with examples.
  • Pay promptly; publish anonymized write-ups to improve community safety.

10) Vendor & Tooling (starter stack)

  • Static/linters: Slither, Solhint/Semgrep.
  • Fuzz/property: Foundry (invariant), Echidna.
  • Formal methods (selective): Certora/SMTChecker for core invariants.
  • SCA & deps: npm/yarn audit + lockfile pinning; verify libraries.
  • Secrets: SOPs for deployer keys, hardware wallets, shard + multisig.

11) Launch Checklist 

  •  Commit/compile pinned; reproducible builds.
  •  All high/critical audit findings fixed & re-verified.
  •  Admin roles: multisig + timelock live; EOA keys removed.
  •  Oracles: TWAP/median + staleness guards.
  •  Pauser tested on-chain; withdrawal policy documented.
  •  Monitor + alerting dashboards online.
  •  Bug bounty live; response runbook rehearsed.
  •  Public docs: risks, parameters, upgrade & governance policies.

Quick FAQ

  • Single vs multi-auditor? Prefer at least two independent reviews for core protocols.
  • Formal verification? Use selectively for components with simple, critical invariants (vault accounting, AMM math).
  • Are testnets enough? No. Use testnets + mainnet forks + chaos scenarios.


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