Sky Diamond PAU v1.15
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About Sky Diamond PAU v1.15
Sky implements a new facet integrating Aave V4 into the PAU system. AaveV4Facet supplies underlying held by the ALMProxy into an Aave V4 market and withdraws it back, bounded by rate limits keyed on the market and, on deposits, by a slippage tolerance configured per market and a bad debt tolerance configured per hub asset. In Version 2, the PAUInit library, which wires a PAU stack from a governance spell, entered the scope. In Version 3, the wiring of every facet moved on-chain into BeaconConfig and the corresponding I
Audit Summary
The most critical subjects covered in our audit are functional correctness, security of assets and external integrations. The deposit path additionally requires the bad debt Aave V4 reports for the asset to stay within a tolerance configured per hub asset, which initially blocked deposits for reasons unrelated to the market being used, see Bad Debt Too Small to Be Worth Liquidating Blocks All Deposits. Security regarding all the aforementioned subjects is high.
The general subjects covered are documentation, trustworthiness and event handling. The codebase features extensive NatSpec and a dedicated integration document, and underlying only ever moves between the ALMProxy and a market the admin has configured. Security regarding all the aforementioned subjects is good.
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.