Summary
The most critical subjects covered in our audit are LP token price manipulation by unprivileged users, price manipulation by privileged users, and decimal precision in mathematical operations. For all aforementioned subjects, the security is high.
The general subject covered by this audit is the integration of SafeguardPool LP tokens as collateral in Euler lending markets. Regarding this subject security is good, but as seen in Potentially significant underpricing in Some Scenarios, the price returned by the oracle is only a lower bound on the value of the LP tokens. Users whose positions are collateralized by SafeguardPool LP tokens should be aware of the pricing mechanism.
Since the price returned by the oracle is a lower bound, ChainSecurity reminds future users of SwaapSafeguardOracle that it can only be used to price the collateral of lending markets, and never the borrowable token.
In summary, we find that the codebase provides a good 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 Swaap v2 Euler Adapter
Swaap Labs implements SwaapSafeguardOracle, a price feed that integrates in the Euler Price Oracles system to allow using Liquidity Tokens of Swaap SafeguardPool as collateral in Euler vaults.
We have collaborated with ChainSecurity on four occasions, and their findings and reports have consistently been thorough and insightful. Their unmatched expertise proved invaluable during complex integrations across different projects. We look forward to continuing our partnership with them in the future.
Christian Dahdah, Senior Protocol Engineer