Prepared by:
HALBORN
Last Updated 07/15/2025
Date of Engagement: August 14th, 2024 - August 23rd, 2024
100% of all REPORTED Findings have been addressed
All findings
8
Critical
0
High
0
Medium
0
Low
1
Informational
7
The Shinkai team
engaged Halborn
to conduct a security assessment on their smart contracts beginning on 2024-08-14 and ending on 2024-08-23. The security assessment was scoped to the smart contracts provided in the GitHub repositories:
Commit hashes and further details can be found in the Scope section of this report.
Halborn
was provided one week and two days for the engagement and assigned one full-time security engineer to check the security of the smart contract. The security engineer is a blockchain and smart-contract security expert with advanced penetration testing, smart-contract hacking, and deep knowledge of multiple blockchain protocols.
The purpose of this assessment is to:
Ensure that smart contract functions operate as intended.
Identify potential security issues with the smart contracts.
In summary, Halborn
identified several security concerns that were acknowledged by the Shinkai team.
Halborn
performed a combination of manual review of the code and automated security testing to balance efficiency, timeliness, practicality, and accuracy in regard to the scope of the smart contract assessment. While manual testing is recommended to uncover flaws in logic, process, and implementation; automated testing techniques help enhance coverage of smart contracts and can quickly identify items that do not follow security best practices. The following phases and associated tools were used throughout the term of the assessment:
Research into the architecture, purpose, and use of the platform.
Smart contract manual code review and walkthrough to identify any logic issue.
Thorough assessment of safety and usage of critical Solidity variables and functions in scope that could led to arithmetic related vulnerabilities.
Manual testing by custom scripts.
Graphing out functionality and contract logic/connectivity/functions (solgraph
).
Static Analysis of security for scoped contract, and imported functions. (Slither
).
Local or public testnet deployment (Foundry
, Remix IDE
).
EXPLOITABILITY METRIC () | METRIC VALUE | NUMERICAL VALUE |
---|---|---|
Attack Origin (AO) | Arbitrary (AO:A) Specific (AO:S) | 1 0.2 |
Attack Cost (AC) | Low (AC:L) Medium (AC:M) High (AC:H) | 1 0.67 0.33 |
Attack Complexity (AX) | Low (AX:L) Medium (AX:M) High (AX:H) | 1 0.67 0.33 |
IMPACT METRIC () | METRIC VALUE | NUMERICAL VALUE |
---|---|---|
Confidentiality (C) | None (I:N) Low (I:L) Medium (I:M) High (I:H) Critical (I:C) | 0 0.25 0.5 0.75 1 |
Integrity (I) | None (I:N) Low (I:L) Medium (I:M) High (I:H) Critical (I:C) | 0 0.25 0.5 0.75 1 |
Availability (A) | None (A:N) Low (A:L) Medium (A:M) High (A:H) Critical (A:C) | 0 0.25 0.5 0.75 1 |
Deposit (D) | None (D:N) Low (D:L) Medium (D:M) High (D:H) Critical (D:C) | 0 0.25 0.5 0.75 1 |
Yield (Y) | None (Y:N) Low (Y:L) Medium (Y:M) High (Y:H) Critical (Y:C) | 0 0.25 0.5 0.75 1 |
SEVERITY COEFFICIENT () | COEFFICIENT VALUE | NUMERICAL VALUE |
---|---|---|
Reversibility () | None (R:N) Partial (R:P) Full (R:F) | 1 0.5 0.25 |
Scope () | Changed (S:C) Unchanged (S:U) | 1.25 1 |
Severity | Score Value Range |
---|---|
Critical | 9 - 10 |
High | 7 - 8.9 |
Medium | 4.5 - 6.9 |
Low | 2 - 4.4 |
Informational | 0 - 1.9 |
Critical
0
High
0
Medium
0
Low
1
Informational
7
Security analysis | Risk level | Remediation Date |
---|---|---|
Hardcoded Limiter Based on Current Number Of Blocks Per Year | Low | Risk Accepted - 07/14/2025 |
Missing Visibility Modifier For The Available Namespaces | Informational | Acknowledged - 07/14/2025 |
Lack Of Storage Gap In Upgradeable Contract | Informational | Acknowledged - 07/14/2025 |
Use Of OwnableUpgradeable Library With Single-Step Ownership Transfer | Informational | Acknowledged - 07/14/2025 |
Consider Using Named Mappings | Informational | Acknowledged - 07/14/2025 |
Use Of Unlicensed Smart Contracts | Informational | Acknowledged - 07/14/2025 |
Redundant Reward Accrual | Informational | Acknowledged - 07/14/2025 |
Unlocked Pragma Compilers | Informational | Acknowledged - 07/14/2025 |
//
The baseRewardsRateMaxMantissa
is set in the ShinkaiRegistry contract as a constant, calculated based on a fixed assumption about the number of blocks per year. Due to its immutability, this value is hardcoded into the contract's bytecode and cannot be altered without implementation upgrade. However, as the block time can change over time due to network adjustments or protocol upgrades, relying on this hardcoded constant can lead to inaccuracies.
uint256 public constant baseRewardsRateMaxMantissa = 190258751902; // 50% inflation yearly (0.5e18 / blocksInYear)
Consider implementing a function allowing to dynamically adjust the baseRewardsRateMaxMantissa
variable.
RISK ACCEPTED: The Shinkai team accepted the risk of this finding.
//
The namespace
mapping in the ShinkaiRegistry contract holds a string that is concatenated to the user's identity when they claim a new identity. However, the mapping lacks a visibility modifier, which defaults its visibility to internal. This oversight makes it difficult for users to check the available namespaces before selecting where to concatenate their identity. As a result, users might unintentionally select the wrong namespace, leading to potential identity mismanagement.
mapping(uint256 => string) namespaces;
Consider adding a public visibility to the namespace
mapping.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
The ShinkaiRegistry
contracts is designed to be used with a UUPS proxy pattern. However, it lacks storage gaps. Storage gaps are essential for ensuring that new state variables can be added in future upgrades without affecting the storage layout of inheriting child contracts. Without it, any addition of new state variables in future contract versions can lead to storage collisions.
Consider adding a storage gap as the last storage variable. Place the uint256[50] private __gap;
variable at the end of storage layout of ShinkaiRegistry contract.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
The ownership of the contracts can be lost as the ShinkaiRegistry and ShinkaiControlled contracts inherited from the OwnableUpgradeable/Ownable contract and their ownership can be transferred in a single-step process. The address the ownership is changed to should be verified to be active or willing to act as the owner.
It is recommended to implement a two-step process where the owner nominates an account and the nominated account needs to call an acceptOwnership
function for the transfer of the ownership to fully succeed. This ensures the nominated EOA account is a valid and active account. This can be achieved by using OpenZeppelin’s Ownable2StepUpgradeable contract instead of the OwnableUpgradeable.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
The project is using Solidity version greater than 0.8.18, which supports named mappings. Using named mappings can improve the readability and maintainability of the code by making the purpose of each mapping clearer. This practice will enhance code readability and make the purpose of each mapping more explicit.
Consider refactoring the mappings to use named arguments.
For example, on instead of declaring: mapping(uint256 => string) public tokenIdToIdentity;
The mapping could be declared as: mapping(uint256 tokenId => string identity) public tokenIdToIdentity;
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
All the Shinkai smart contracts are marked as unlicensed, as indicated by the SPDX license identifier at the top of the files:
// SPDX-License-Identifier: UNLICENSED
Using unlicensed contract can lead to legal uncertainties and potential conflicts regarding the usage, modification and distribution rights of the code. This may deter other developers from using or contributing to the project and could potentially lead to legal issues in the future.
It is recommended to choose and apply an appropriate open-source license to the smart contracts. Some popular options for blockchain and smart contract projects include:
MIT License: A permissive license that allows for reuse with minimal restrictions.
GNU General Public License (GPL): A copyleft license that ensures derivative works are also open-source.
Apache License 2.0: A permissive license that provides an express grant of patent rights from contributors to users.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
The unclaimIdentity
function implemented in ShinkaiRegistry calls claimStakingRewards method before proceeding with the unclaim process to ensure the user's staking rewards are accrued. After accruing, it burn the related NFT.
function unclaimIdentity(string calldata identity) public onlyOwnerIdentity(identity) {
claimStakingRewards(identity);
shinkaiNft.burn(identityData[identity].boundNft);
emit IdentityUnclaim(identity, identityData[identity].boundNft);
delete tokenIdToIdentity[identityData[identity].boundNft];
delete identityData[identity].boundNft;
_resetIdentityData(identity);
shinToken.transfer(msg.sender, identityData[identity].stakedTokens);
identityData[identity].stakedTokens = 0;
emit StakeUpdate(identity, 0);
identityData[identity].lastUpdated = block.timestamp;
}
The burn
function in ShinkaiNft triggers the _beforeTokenTransfer
method, which then calls back to the registry contract, executing the claimRewards
function.
function _beforeTokenTransfers(address from, address, /*to*/ uint256 startTokenId, uint256 /*quantity*/ )
internal
override
{
if (from == address(0)) return;
string memory identity = registry.tokenIdToIdentity(startTokenId);
registry.claimRewards(identity);
}
The claimRewards
function accumulates both staking and delegation rewards.
function claimRewards(string memory identity) public returns (uint256 tokensAccrued) {
tokensAccrued += claimStakingRewards(identity);
tokensAccrued += claimDelegationRewards(identity);
}
Since the claimRewards
function already includes a call to claimStakingRewards, the initial call to claimStakingRewards
in the unclaimIdentity
function is redundant and can be removed to optimize gas costs.
Consider removing the redundant invocation.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
//
The files in scope currently use floating pragma version ^0.8.20
, which means that the code can be compiled by any compiler version that is greater than or equal to 0.8.0
, and less than 0.9.0
. It is recommended that contracts should be deployed with the same compiler version and flags used during development and testing. Locking the pragma helps to ensure that contracts do not accidentally get deployed using another pragma. For example, an outdated pragma version might introduce bugs that affect the contract system negatively.
Additionally, using a newer compiler version that introduces default optimizations, including unchecked overflow for gas efficiency, presents an opportunity for further optimization.
Lock the pragma version to the same version used during development and testing.
ACKNOWLEDGED: The Shinkai team acknowledged this finding.
Static Analysis Report
Description
Halborn used automated testing techniques to enhance the coverage of certain areas of the scoped contracts. Among the tools used was Slither, a Solidity static analysis framework. After Halborn verified all the contracts in the repository and was able to compile them correctly into their abi and binary formats, Slither was run on the all-scoped contracts. This tool can statically verify mathematical relationships between Solidity variables to detect invalid or inconsistent usage of the contracts' APIs across the entire code-base.
Slither results
ShinkaiToken ERC20 analysis
ShinkaiNft ERC721 analysis
ShinkaiNFT.sol
ShinkaiRegistry.sol
Halborn strongly recommends conducting a follow-up assessment of the project either within six months or immediately following any material changes to the codebase, whichever comes first. This approach is crucial for maintaining the project’s integrity and addressing potential vulnerabilities introduced by code modifications.
// Download the full report
Shinkai Protocol
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