Atlendis Labs Announces the Audit of Its Latest Revolving Credit Line Product Version
Nethermind Security completed an audit of the V2.1 of Atlendis' Revolving Credit Line product
Atlendis Labs, after the release of its V2, has diligently continued to enhance its product offerings. In alignment with the company's steadfast commitment to security, the Atlendis Labs team consistently endeavors to provide the utmost safety and trustworthiness for both borrowers and lenders. This dedication to security was exemplified through the first audit of V2. In this vein, even the introduction of a new version with minimal updates warranted another audit, which was conducted under the guidance of Nethermind Security.
Enabling Enhanced Flexibility for Atlendis Pools
The fundamental principle underlying the Atlendis protocol is to deliver products that empower users to experience the utmost flexibility when it comes to lending and borrowing. This flexibility is seamlessly integrated with Real World Assets, a sector historically characterized by illiquidity, opacity, and high barriers to entry. Atlendis Protocol aims to address these limitations comprehensively.
In line with this vision, the latest iteration of the Atlendis Revolving Credit Line product introduces two pivotal features for borrowers: Loan Rollover and Early Repayment.
The Loan Rollover feature permits borrowers to effectively chain loan cycles while repaying only the lenders interested in exiting the loan. This facilitates capital-efficient pools with minimal token movements between loan cycles. Lenders always retain the option to opt out of a loan, but those who choose to stay and are matched in successive loans can continuously earn interest without disruption.
The Early Repayment feature allows borrowers to repay their loans in advance, aligning with the financing cycles of their underlying use cases. Typically, borrowers utilize loans to fund Real World applications, and their financial requirements directly correlate with their clients' pipelines. When necessary, borrowers can enable the early repayment feature to save on interest costs. It's essential to note that the activation of this feature is explicitly indicated within the Atlendis application, ensuring lenders have complete information.
In terms of features, the Revolving Credit Line product is progressively striking a balance between flexibility and stability. Atlendis Labs' core value remains unwavering: a steadfast commitment to providing users with the highest level of safety and reliability.
Overview and Scope of the Audit Project
Nethermind Security, a trusted partner, conducted the audit of the new version (V2.1) of Atlendis Labs' Revolving Credit Line product. This audit served as a follow-up to their prior collaboration on V2, which transpired in May 2023.
In addition to the Revolving Credit Line smart contracts, the audit encompassed migration scripts and rewards management contracts. The migration script is designed to offer a seamless transition for lenders interested in migrating from the older V1 pools to V2 pools. The rewards contracts are intended to facilitate staking rewards programs, similar to those conducted in the past but for V2.
The audit, which commenced on September 11, 2023, spanned three weeks. The Nethermind Security team meticulously reviewed the code, combining manual assessment with automated tools, followed by verification through simulations and test cases. Subsequently, they shared their findings with the Atlendis Labs team for discussion and the necessary follow-up actions.
Findings Summary and Atlendis Labs’ Responses
The Nethermind Security team's audit resulted in 11 findings, classified by criticality as follows: 2 medium, 3 low, 2 informational, and 4 best practices. A detailed breakdown of the methodology used for classification can be accessed in the audit report.
Of note, both medium-level findings have been promptly addressed. The first highlighted the potential clash between early repayment and exit features under specific conditions, which could challenge the fixed rate offered to borrowers. To mitigate this, these two features will never be activated simultaneously unless explicitly requested by borrowers.
The second medium-level finding identified a design flaw within some aspects of the rewards system, potentially allowing for unfairly substantial rewards. This issue was resolved through the elimination of the design flaw.
Low- and below-criticality findings resulted in minimal disruption and were either resolved or acknowledged with a comment from the team. Atlendis Labs' detailed responses can be found in the audit report.
The Atlendis Labs team expressed great satisfaction with its collaboration with the Nethermind Security team, commending their adaptability and transparency throughout the audit process.
Atlendis Labs extends its heartfelt gratitude to Nethermind Security for their diligence and unwavering commitment to rigorous auditing. This audit has not only been a continuation of our collaboration, which began with the V2 audit, but also signifies a foundation for further mutual development and growth.