🔎The Satraps Audit
We were asked to proactively participate in the Satraps audit of our project, which we welcomed as an opportunity. We engaged with the team and volunteered information to help them be critical so we can make necessary changes.
Areas of Improvement
The economic model of the project, which is primarily a token farming/liquidity pool system, lacks a sustainable long-term plan to generate income for the team and investors.
We have made a number of improvements compared to the Songbird launch
Limited token supply, with a long term token distribution model
Increased liquidity, as staking requires Liquidity Pool (LP) tokens to be staked
Staking/FlareDrop rewards by utilizing SFLR liquid staking to pair FRB
Airdrop mechanism which requires participation in order to receive the remaining rewards
Changes have been made to ensure sufficient income to run operations:
10% of fees are sent to the multisig of the core contributors
Fees from NFT charging are also sent to the multisig
This aligns the incentive of the core contibutors with the community, as only through utlization fees are generated. There is no token allocation for the team. Limited operational costs due to in-house development.
There is no token allocation for the team
The project does not appear to be contributing meaningful value to the network beyond the token farming mechanics.
This is true for the initial version, as the core audience is the Canary Reborn community. New products that will be deployed must contribute to the network one way or another.
Concerns around the centralization of the DAO governance model of the project.
The main concern is the multi-sig wallet which is able to veto proposals. This could in theory allow owners of this wallet to stop any community proposal.
The reason we have implemented this is for security reasons, as malicious proposals could attempt to transfer DAO treasury funds to their own wallet or transfer ownership of contracts to unknown parties
Note that this wallet does not have any ability to pass proposals without a majority vote, similar to any other NFT holder launching a proposal.
Action Plan
The team will rework the contracts to ensure they are fully upgradeable, implementing easy-to-use functions for future modifications.
As mentioned under Q&A, we will launch on Flare with a light version of the DAO contract with limited functionality. We will update the contracts and test the full version of the DAO contract on Songbird before deploying it on Flare. The light DAO version will only have few functions:
Transfer unallocated FRB to the future DAO contract
Transfer LP tokens to the future DAO contract
Transfer ownership of token contract to the future DAO contract
Transfer ownership airdrop contract to future DAO contract
Migrate function that executes the above in one transaction
The existing NFT Lending platform tested on Songbird will be reworked and revised, with a new version tested within the next 6 months.
We will prioritize the launch on Flare on the core functionality: Staking & Harvesting. After which we will do the following:
Launch farm on Songbird for FRB
Rework & launch DAO contract on Songbird
Publicly available version of the dApp on Github
Work on a either an improved version of the NFT lending platform or another product, as voted by the community
The pace of these deployments will depend on the time and resources of the contributors to Canary Reborn. This will most likely take more time than the 6 months mentioned.
The project documentation will be updated to incorporate feedback from the audit, including necessary changes to the contracts and roadmap.
We have extensively updated the documentation, including the Flare launch proposal.
We have extensively updated the documentation, including the Flare launch proposal.
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