Dromos Labs MetaDEX Slipstream

About Dromos Labs MetaDEX Slipstream

Dromos Labs implements Slipstream, a concentrated-liquidity AMM forked from Uniswap V3. It tracks staked liquidity per tick, so that positions staked in a gauge earn emissions instead of swap fees, and lets a pluggable hook set the swap fee. We have conducted a thorough review of the scope with a focus on privileged roles, liveness, and the handling of failing external calls:

Audit Summary

The gauge factory splits control over emission caps, referrals and penalties between several roles and the emergency council of the LeafVoter. The emergency council could not zero a gauge’s emission cap at all, which has been resolved, see setEmissionCap reverts: LeafVoter has no emergencyCouncil.

Staked positions must stay withdrawable at all times. A chain suspension locked staked NFTs with pending rewards, which has been resolved, see Chain suspension locks staked NFTs with pending rewards.

Pools wrap their calls into the swap hook and the fee modules so that a failing callee does not block swaps. A caller could starve these calls of gas to select their failure branch, see Griefing via passing insufficient gas, and the fixed gas stipends could not adapt to future gas repricing, see Hardcoded gas stipends cannot adapt to gas repricing. The gas stipends have been removed. The swap hook is now called directly, so a failing hook reverts the swap or flash instead of selecting a fallback fee. The unstaked fee module is still called in a try/catch that forwards 63/64 of the available gas, so a malicious caller may still be able to force its fallback.

We provide this audit report to assist in forming an opinion on the risk profile of MetaDEX Slipstream. In summary, we find that the codebase provides a good level of security, if operated under the assumptions documented in System Overview, Trust Model and System Considerations.

The emergency withdrawal mechanism added in Version 5, which bypasses accounting that the rest of the system relies on, was reviewed on a short notice of only days before launch. One related issue was identified, see Emergency withdrawals let new stakes capture past emissions. Due to the higher risk of undiscovered issues, further review and testing should be conducted before emergency withdrawals are relied on in production.

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.