sBOLD

About sBOLD

K3 Capital implements sBOLD, an ERC4626 vault that deposits BOLD into Liquity V2 stability pools, providing a tokenization and asset allocation layer on top of Liquity V2 Stability Pool deposits.

Audit Summary

The most critical subjects covered in our audit are accounting correctness, reentrancies, and interactions with Stability Pools. In Version 3 , security regarding all the aforementioned subjects is high. The possibility of value extraction through self-liquidations has been mitigated. Issues regarding the interaction with Liquity V2 Stability pools that were present in Version 1 have been fully remediated. The logic in Liquity V2 Stability Pools has been modified between Version 2 and Version 3 of this codebase. A minor integration issue is introduced by the new Stability Pool logic (withdraw fail because stability pool cannot be emptied).

The general subjects covered are testing, price conversions, fees, and ERC-4626 compliance. Testing is improvable, a number of issues were uncovered that should have been found through testing. Incorrect price conversions, inconsistent handling of fees, and low ERC-4626 standard compliance have all been addressed and are now appropriate.

In summary, we find Version 3 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.