Daml - Diff Review - Temple

1. Summary

2. Introduction

Temple engaged our security analysis team to conduct a targeted security audit of their DAML smart contract ecosystem deployed on the Canton distributed ledger. The primary aim was to assess the security architecture of the incremental changes introduced between release tags 4.0.1 and 4.1.1, with a focus on identifying authorization flaws, asset accountability gaps, and logic correctness issues within the settlement and delegation framework. Our assessment was strictly confined to the modified non-test DAML modules within those two releases, ensuring a focused and evidence-driven analysis.

3. Assessment Summary

Our engagement with Temple spanned a 1 day period, during which we dedicated one full-time security engineer with extensive experience in blockchain security, distributed ledger protocols, and DAML/Canton smart contract semantics. The objectives of this assessment were to:

• Verify the correct handling of asset lifecycle operations across the delegation and settlement workflows.

• Identify authorization, access control, and logic vulnerabilities introduced in the 4.0.1 → 4.1.1 delta.

• Evaluate the integrity of critical flows including allocation splitting, allocation merging, settlement request signing, and fee processing.

• Provide actionable recommendations to harden the security and correctness of Temple's settlement infrastructure.