Reach out for an audit or to learn more about Macro
or Message on Telegram

Seven Seas A-26

Security Audit

Jan 17, 2025

Version 1.0.0

Presented by 0xMacro

Table of Contents

Introduction

This document includes the results of the security audit for Seven Seas's smart contract code as found in the section titled ‘Source Code’. The security audit was performed by the Macro security team from Jan 6th to Jan 10th, 2025.

The purpose of this audit is to review the source code of certain Seven Seas Solidity contracts, and provide feedback on the design, architecture, and quality of the source code with an emphasis on validating the correctness and security of the software in its entirety.

Disclaimer: While Macro’s review is comprehensive and has surfaced some changes that should be made to the source code, this audit should not solely be relied upon for security, as no single audit is guaranteed to catch all possible bugs.

Overall Assessment

The following is an aggregation of issues found by the Macro Audit team:

Severity Count Acknowledged Won't Do Addressed
Medium 1 - - 1
Code Quality 1 1 - -

Seven Seas was quick to respond to these issues.

Specification

Our understanding of the specification was based on the following sources:

Trust Assumptions:

Some of the reviewed decoders allow Boring Vaults to interact with protocols controlled by multisig wallets that can update important state variables or upgrade the contract to a new version. It is trusted that the owners of this mulitsig will act in the interest of users. It should be understood that a loss of Boring Vault funds is possible if these wallets act maliciously.

Source Code

The following source code was reviewed during the audit:

Note: This document contains an audit solely of the Solidity contracts listed above. Specifically, the audit pertains only to the contracts themselves, and does not pertain to any other programs or scripts, including deployment scripts.

Issue Descriptions and Recommendations

Click on an issue to jump to it, or scroll down to see them all.

Security Level Reference

We quantify issues in three parts:

  1. The high/medium/low/spec-breaking impact of the issue:
    • How bad things can get (for a vulnerability)
    • The significance of an improvement (for a code quality issue)
    • The amount of gas saved (for a gas optimization)
  2. The high/medium/low likelihood of the issue:
    • How likely is the issue to occur (for a vulnerability)
  3. The overall critical/high/medium/low severity of the issue.

This third part – the severity level – is a summary of how much consideration the client should give to fixing the issue. We assign severity according to the table of guidelines below:

Severity Description
(C-x)
Critical

We recommend the client must fix the issue, no matter what, because not fixing would mean significant funds/assets WILL be lost.
(H-x)
High

We recommend the client must address the issue, no matter what, because not fixing would be very bad, or some funds/assets will be lost, or the code’s behavior is against the provided spec.
(M-x)
Medium

We recommend the client to seriously consider fixing the issue, as the implications of not fixing the issue are severe enough to impact the project significantly, albiet not in an existential manner.
(L-x)
Low

The risk is small, unlikely, or may not relevant to the project in a meaningful way.

Whether or not the project wants to develop a fix is up to the goals and needs of the project.
(Q-x)
Code Quality

The issue identified does not pose any obvious risk, but fixing could improve overall code quality, on-chain composability, developer ergonomics, or even certain aspects of protocol design.
(I-x)
Informational

Warnings and things to keep in mind when operating the protocol. No immediate action required.
(G-x)
Gas Optimizations

The presented optimization suggestion would save an amount of gas significant enough, in our opinion, to be worth the development cost of implementing it.

Issue Details

M-1

EulerEVK decoder doesn’t support disabling controller and collateral

Topic
Protocol Design
Status
Fixed
Impact
Medium
Likelihood
Medium

The EulerEVK decoder implements the enableController and enableCollateral functions, which are needed to link a collateral vault to a controller vault for strategy formation. However, the decoder lacks functionality to disable controllers or collateral. This limitation is particularly important since only 10 controllers and 10 collaterals can be defined at once. As a result, the boring vault cannot modify its strategy and add new vaults to the strategy once the limit of 10 controllers or collaterals has been reached.

Remediations to Consider

Implement the disableController and disableCollateral functions in the decoder to prevent reaching the maximum limit of 10 controllers or collaterals

Q-1

SkyMoney decoder doesn’t support earning SKY token rewards

Topic
Protocol Design
Status
Acknowledged
Quality Impact
Medium

The SkyMoney decoder can utilize the existing ERC4626 decoder to deposit USDS into the sUSDS Vault to generate yields. While the SkyMoney protocol offers the UsdsSkyRewards contract for earning SKY token rewards on staked USDS, this functionality is not currently supported by the SkyMoney decoder.

Remediations to Consider

If earning SKY token rewards should be supported by the decoder, implement the required functions for interacting with the UsdsSkyRewards contract.

Response by Seven Seas

The team confirmed that this feature is currently not needed.

Disclaimer

Macro makes no warranties, either express, implied, statutory, or otherwise, with respect to the services or deliverables provided in this report, and Macro specifically disclaims all implied warranties of merchantability, fitness for a particular purpose, noninfringement and those arising from a course of dealing, usage or trade with respect thereto, and all such warranties are hereby excluded to the fullest extent permitted by law.

Macro will not be liable for any lost profits, business, contracts, revenue, goodwill, production, anticipated savings, loss of data, or costs of procurement of substitute goods or services or for any claim or demand by any other party. In no event will Macro be liable for consequential, incidental, special, indirect, or exemplary damages arising out of this agreement or any work statement, however caused and (to the fullest extent permitted by law) under any theory of liability (including negligence), even if Macro has been advised of the possibility of such damages.

The scope of this report and review is limited to a review of only the code presented by the Seven Seas team and only the source code Macro notes as being within the scope of Macro’s review within this report. This report does not include an audit of the deployment scripts used to deploy the Solidity contracts in the repository corresponding to this audit. Specifically, for the avoidance of doubt, this report does not constitute investment advice, is not intended to be relied upon as investment advice, is not an endorsement of this project or team, and it is not a guarantee as to the absolute security of the project. In this report you may through hypertext or other computer links, gain access to websites operated by persons other than Macro. Such hyperlinks are provided for your reference and convenience only, and are the exclusive responsibility of such websites’ owners. You agree that Macro is not responsible for the content or operation of such websites, and that Macro shall have no liability to your or any other person or entity for the use of third party websites. Macro assumes no responsibility for the use of third party software and shall have no liability whatsoever to any person or entity for the accuracy or completeness of any outcome generated by such software.