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MakerDao Interest Rate Strategy

Security Audit

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Summary

The most critical subjects covered in our audit are functional correctness and the correct adherence to the MakerDAO specifications. We have high confidence on both subjects although a certain base variable is omitted where no official specification indicates that it is not in use.

In summary, we find that the codebase provides a high level of security.

It is important to note that security audits are time-boxed and cannot uncover all vulnerabilities. They complement but don’t replace other vital measures to secure a project.

About MakerDao Interest Rate Strategy

MakerDAO implements a new interest rate strategy for the Aave v3 fork Spark Lend that sets the interest rate for the Spark Lend DAI market to the base DAI savings rate. In comparison to the old version, the contract retrieves the base rate from the “ETH-C” ilk (collateral type) of the Maker contract Jug instead of the DSR rate from the Maker contract Pot.

“The Maker Protocol, also known as the Multi-Collateral Dai (MCD) system, allows users to generate Dai by leveraging collateral assets approved by “Maker Governance.” Maker Governance is the community organized and operated process of managing the various aspects of the Maker Protocol. Dai is a decentralized, unbiased, collateral-backed cryptocurrency soft-pegged to the US Dollar. Resistant to hyperinflation due to its low volatility, Dai offers economic freedom and opportunity to anyone, anywhere.”

Source: https://makerdao.com/en/whitepaper/

It was a pleasure working with ChainSecurity. They maintained clear and direct dialogue with us and we look forward to working with them on future Layer 2 solutions to help us scale and grow the DAI ecosystem.
Derek Flossman, Head of Protocol Engineering Core Unit (MakerDAO)