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MakerDAO SparkLendConduit

Security Audit

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Summary

The most critical subjects covered in our audit are functional correctness and frontrunning resistance. Functional correctness is high.

While the conduit withdraw() function can be frontrun, the function is only called by members of the SubDAO which are able to mitigate the risk, if necessary, by using more private channels for the inclusion of such transactions into the blockchain.

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 SparkLendConduit

MakerDAO implements a conduit contract for funnelling sNST into Spark, an Aave v3 fork.

“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/