Parex Network Successfully Completes Certik Audit of BSC Contract!

In a significant step towards ensuring the long-term security and stability of our platform, Parex Network has successfully completed a comprehensive audit of its BSC token contract conducted by Certik. This rigorous process underscores our commitment to delivering a secure and robust ecosystem for our community. The findings from the audit reinforce our resolve to maintain the highest security standards as we continue to develop and grow the Parex Network.

https://skynet.certik.com/projects/parex

What is Certik? What is an Audit Report?

Certik is one of the leading blockchain security firms globally, founded by top computer science experts from Yale and Columbia University in 2017. The firm specializes in auditing blockchain projects, smart contracts, and decentralized applications to uncover vulnerabilities and ensure the integrity of the underlying code. Certik uses a combination of formal verification, manual reviews, and static analysis to comprehensively evaluate the security of a project’s codebase. These methods allow for an in-depth examination of potential flaws that automated systems might overlook.

An audit report is a detailed assessment that evaluates a blockchain project’s codebase for security issues, inefficiencies, and risks. The goal of an audit is to identify vulnerabilities, propose solutions, and verify that the code operates as intended. Having an audit completed by a reputable firm like Certik provides a strong foundation of trust, ensuring that the platform is safe for users to engage with. It also ensures compliance with industry standards, helping the project reduce potential attack vectors and increase transparency.

Why is the Certik Audit Important for Parex Network?

For Parex Network, security has always been a top priority. By undergoing Certik’s extensive audit process, we aimed to bolster the trust and reliability of our ecosystem. Certik’s audit included smart contract testing of our BSC token contract against both common and uncommon attack vectors, ensuring that Parex’s code could withstand potential threats. This included a thorough examination of contract logic, privileged functions, and cross-chain token operations, particularly in our BSC PRX token contract.

The audit process involved techniques like line-by-line manual code review by Certik’s industry experts, combined with automated tools to detect any possible issues. This hybrid approach ensures that even the most subtle vulnerabilities are addressed. The audit not only provided us with a clear path to resolving existing issues but also affirmed the robustness of our BSC contract moving forward.

Overview of the Audit Findings

During the Certik audit of Parex Network’s BSC contract, a total of 12 findings were identified. These findings were categorized into five severity levels: Critical, Major, Medium, Minor, and Informational. Below is a more detailed breakdown of each finding and how they were addressed:

1 Critical Issue — Resolved

The critical issue uncovered by Certik was related to the incorrect handling of token withdrawals within the cross-chain bridge contract. Specifically, the withdrawal mechanism was flawed, which could have resulted in the improper transfer of tokens. This was a major vulnerability because it could have led to potential token loss during cross-chain operations.

Resolution: Our development team swiftly addressed this issue by updating the token minting and withdrawal logic in the bridge contract. The bridge fee and minting processes were reviewed and corrected to ensure that tokens are properly accounted for and securely transferred between chains. This resolution was critical in safeguarding cross-chain token transfers and ensuring the integrity of the system.

5 Major Issues — 4 Resolved, 1 Acknowledged

Major issues are those that, while not as severe as critical ones, can still affect the security and functionality of the platform. Certik identified five major issues in Parex Network’s BSC contract codebase.

• Centralization Risks: One of the primary concerns raised was the potential for centralization within the BSC smart contracts. Certain functions, such as minting tokens, pausing/unpausing the contract, and fee management, were controlled by privileged roles. This presents a risk if the private keys for these roles are compromised.

Acknowledgement: While centralization risks have been acknowledged, the pause function is critical for the secure operation of the bridge. It allows the platform to temporarily halt operations in case of an emergency, protecting both our partners and users from potential issues. This functionality is especially important to prevent or mitigate attacks or vulnerabilities that could affect the integrity of cross-chain transfers. As we continue to decentralize governance, the pause function remains an essential safeguard for the stability and security of the ecosystem.

• Improper Function Design: Another major issue was related to the improper design of certain smart contract functions, which could prevent the transfer of native tokens under certain conditions.

Resolution: The faulty functions were revised and improved, ensuring that token transfers can now be executed reliably across all scenarios.

2 Medium Issues — Both Resolved

Medium issues were less severe but still required attention to improve the overall performance and reliability of the platform. Certik flagged two medium-level concerns:

• No Cap on Fees: One of the medium issues identified was the absence of a cap on the bridge fees charged during token transfers. Without a limit, fees could theoretically reach 100%, meaning users could potentially lose all of their tokens during a transfer.

Resolution: We addressed this by implementing a fixed fee structure that ensures the fees remain reasonable and predictable. The fee cap now guarantees that users will never be overcharged during transactions, ensuring fairness and consistency across the platform.

• Incomplete Minting Process: Certik also discovered that the token minting process during cross-chain transfers was incomplete, which could lead to issues with fee collection and token transfers not being processed correctly.

Resolution: The minting logic was updated to ensure that fees are properly accounted for, and the token minting process is now fully functional and reliable.

2 Minor Issues — Both Resolved

Minor issues typically involve smaller-scale inefficiencies or improvements that do not directly affect the security or overall operation of the platform but can enhance its robustness.

• Missing Zero Address Validation: A minor issue was related to the lack of validation for zero addresses in certain functions. This could have resulted in the accidental sending of tokens to a zero address, leading to their permanent loss.

Resolution: We added zero-address validation checks to ensure that invalid addresses are detected before any operations can proceed. This improvement eliminates the risk of tokens being mistakenly sent to unusable addresses.

• Duplicate Signer Addresses: Certik also pointed out that there was no mechanism to prevent duplicate signer addresses during the multi-signature approval process, which could weaken the integrity of the signature verification system.

Resolution: The code was updated to include checks that prevent duplicate signers from being added to the signer array, thus strengthening the multi-signature process and ensuring its reliability.

2 Informational Issues — 1 Resolved, 1 Acknowledged

Informational issues are typically suggestions for improving code readability, efficiency, or adherence to best practices. These issues do not pose any direct risks to the platform but can help optimize its operation.

• Public Mint Function: Certik suggested that the mint function could be made more transparent by including a public mint function in the cross-chain token contract.

Resolution: After reviewing this suggestion, the mint function was confirmed to be operating correctly within the design of the project. The minting process will only be initiated through the correct channels, ensuring that no additional public mint function is necessary.

• Fixed Fee Deduction: Certik noted that the bridge fee was deducted as a fixed amount rather than a proportional percentage, which could lead to inefficiencies in fee collection.

Acknowledgement: This issue was acknowledged, and the fixed fee remains in place for now as it aligns with the design of the bridge. However, we will consider more flexible fee structures in future updates to enhance user experience.

Mint & Burn Mechanism in the Bridge

Parex Network’s bridge mechanism operates using the mint & burn technique, which is crucial for secure and efficient cross-chain token transfers. Here’s how it works:

• Burning: When a user initiates a token transfer from one network to another, the tokens on the original network are “burned” (permanently removed from circulation). This ensures that the total token supply remains balanced across networks.

• Minting: Once the tokens are burned on the original network, an equivalent amount of tokens is “minted” on the destination network. This allows the user to receive their tokens in the new network without increasing the overall supply.

This mint & burn mechanism is designed to prevent double spending and maintain the integrity of cross-chain transactions, ensuring that tokens are securely transferred while keeping the supply consistent across networks.

Key Technical Improvements from the Audit

The audit highlighted several areas for technical improvements, all of which were addressed:

1. Token Withdrawal Logic: The main critical issue involved incorrect token withdrawal behavior in the bridge function. Our team quickly resolved this by refining the minting logic, ensuring that bridge fees are properly accounted for and tokens can be securely withdrawn.

2. Fee Cap Implementation: To prevent excessive fees from being charged, a fee cap was implemented, ensuring that bridge fees remain stable and predictable. This is especially important for maintaining fairness in cross-chain transactions.

3. Centralized Role Management: One of the major findings addressed the concentration of power within privileged roles. To mitigate these risks, we have acknowledged Certik’s recommendation to gradually decentralize the control of these roles through time-locked contracts and multi-signature wallets, which will prevent single points of failure.

4. Validation Checks: Issues like missing zero address validation and duplicate signers were corrected. These small but important changes reduce the risk of unexpected errors that could compromise contract integrity.

Why This Matters for the Parex Community

For our community, the completion of the Certik audit of our BSC contract offers reassurance that Parex Network is a secure and trustworthy platform. We have taken significant measures to address any potential vulnerabilities, ensuring the safety of user assets and the integrity of our operations. This audit is a key milestone as we prepare for future developments and expansions within the ecosystem.

Conclusion: Building a Secure Future for Parex

The completion of this audit marks an important chapter in Parex Network’s journey. As we move forward, our focus remains on enhancing the security and scalability of our ecosystem. This audit was an essential step in ensuring that we can continue to provide our users with a secure platform that they can trust, now and in the future.

Parex Network’s success depends on the trust of our community, and this audit reinforces our commitment to maintaining that trust. With the audit now complete, we are more confident than ever in the security and resilience of our network as we prepare for the next phase of growth.

Keynotes:

• The Certik audit of Parex Network’s BSC contract has been successfully completed.

• 12 findings were identified, with 10 resolved and the remaining acknowledged without posing significant risks.

• No critical issues remain unresolved, showcasing the robustness of Parex Network’s security.

• This audit reinforces our dedication to providing a secure platform for our community as we continue to innovate and expand.

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