Particle Leverage AMM (LAMM) Protocol

Invitational Audit Details

• Total Prize Pool: $24,150 USDC

  • HM awards: $18,252 USDC
  • Analysis awards: $1,014 USDC
  • QA awards: $507 USDC
  • Gas awards: $507 USDC
  • Judge awards: $3,370 USDC
  • Scout awards: $500 USDC

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• Submit findings using the C4 form

• Read our guidelines for more details

• Starts December 11, 2023 20:00 UTC

• Ends December 21, 2023 20:00 UTC

Automated Findings / Publicly Known Issues

The 4naly3er report can be found here.

Slither results can be found in here. We’ve reviewed all findings that relate to Particle’s code (excluding imported libraries), and found no concerning issues.

Note for C4 wardens: Anything included in this Automated Findings / Publicly Known Issues section is considered a publicly known issue and is ineligible for awards.

Overview

Particle LAMM protocol enables permissionless leverage trading for any ERC20 tokens. The key idea is to borrow concentrated liquidity from AMMs (Uniswap v3 as a start). For a concentrated liquidity position, its price boundaries mathematically define the amount of tokens to convert at all price points. When borrowing from a concentrated liquidity position, the protocol calculates the exact amount required to top up upfront, such that the contract always locks enough tokens in case the price moves adversely to a price boundary. This design eliminates the need for a price oracle.

• Whitepaper: Medium
• Code overview: Gitbook
• Website: Website
• Twitter: Twitter
• Discord: Discord

Scope

Out of scope

libraries/FullMath.sol, libraries/TickMath.sol, libraries/LiquidityAmounts.sol, libraries/PoolAddress.sol and interfaces/INonfungiblePositionManager.sol are adopted from Uniswap production code to support solidity 0.8.23. The diff can be examined via the following commands.

diff -u ./lib/v3-core/contracts/libraries/FullMath.sol ./contracts/libraries/FullMath.sol --ignore-space-change
diff -u ./lib/v3-core/contracts/libraries/TickMath.sol ./contracts/libraries/TickMath.sol --ignore-space-change
diff -u ./lib/v3-periphery/contracts/libraries/LiquidityAmounts.sol ./contracts/libraries/LiquidityAmounts.sol --ignore-space-change
diff -u ./lib/v3-periphery/contracts/libraries/PoolAddress.sol ./contracts/libraries/PoolAddress.sol --ignore-space-change
diff -u ./lib/v3-periphery/contracts/interfaces/INonfungiblePositionManager.sol ./contracts/interfaces/INonfungiblePositionManager.sol --ignore-space-change

Scoping Details

• How many contracts are in scope?: 9
• Total SLoC for these contracts?: 1299
• How many external imports are there?: 15
• How many separate interfaces and struct definitions are there for the contracts within scope?: 1 interface, 9 structs
• Does most of your code generally use composition or inheritance?: Inheritance
• What is the overall line coverage percentage provided by your tests?: 95%
• Is this an upgrade of an existing system?: False
• Check all that apply (e.g. timelock, NFT, AMM, ERC20, rollups, etc.): AMM, ERC-20 Token
• Is there a need to understand a separate part of the codebase / get context in order to audit this part of the protocol?: True
• Please describe required context: Uniswap v3 basic math, Uniswap liquidity logic
• Does it use an oracle?: False
• Describe any novel or unique curve logic or mathematical models your code uses: Uniswap basic math, most importantly conversion of liquidity into different token amounts under different price points
• Is this either a fork of or an alternate implementation of another project?: False
• Does it use a side-chain?: False
• Describe any specific areas you would like addressed: About the design: (1) is the collateral guarantee safe in all conditions, meaning, the LPs suffers no higher impermanent loss than Uniswap itself (except for Uniswap's own rounding error) (2) borrowed liquidity should earn no less fees compared to the same liquidity would have otherwise earned in the pool (3) do we use uniswap critical variables correctly, such as the feeGrowth parameters and how we handle the premiumPortion (4) are the liquidation conditions safe or exploitable. In addition, about the implementation details: access control, token edge-case handling, reentrancy risks, and proper integration with external contracts.

Setup

Cloning with submodules

git clone --recurse-submodules

Updating with submodule if the repo was cloned without --recurse-submodules

git submodule update --init --recursive

Add the following to .env

PRIVATE_KEY=[WALLET_PRIVATE_KEY]
MAINNET_RPC_URL=https://eth-mainnet.g.alchemy.com/v2/[ALCHEMY_API_KEY]
GOERLI_RPC_URL=https://eth-goerli.g.alchemy.com/v2/[ALCHEMY_API_KEY]
ETHERSCAN_API_KEY=[ETHERSCAN_API_KEY]

Run

foundryup
source .env

Test

Unit tests

forge test -vv --fork-url $MAINNET_RPC_URL --fork-block-number [BLOCK_NUMBER]

Gas report

forge test --gas-report --fork-url $MAINNET_RPC_URL --fork-block-number [BLOCK_NUMBER]

Coverage

forge coverage --ir-minimum --fork-url $MAINNET_RPC_URL --fork-block-number [BLOCK_NUMBER]

Foundry Deployment

Deploy

forge script script/DeployPositionManager.s.sol:DeployParticlePositionManager --rpc-url $GOERLI_RPC_URL/$MAINNET_RPC_URL --private-key $PRIVATE_KEY --broadcast --verify -vv

Verify

forge verify-contract [CONTRACT_ADDRESS] contracts/protocol/ParticlePositionManager.sol:ParticlePositionManager --chain goerli/mainnet --watch

Hardhat Deployment

Dependencies

yarn install
source .env

Deploy

yarn deploy script/deployPositionManager.ts --network goerli/mainnet --show-stack-traces

Verfiy

yarn verify --network goerli/mainnet [IMPLMENTATION_ADDRESS]
yarn verify --network goerli/mainnet [PROXY_ADDRESS] [IMPLMENTATION_ADDRESS] 0x