1 Executive Summary

This report presents the results of our engagement with bitbank, Inc. to review a set of smart contracts for managing deposits of Ethereum-based assets to the bitbank exchange.

The review was conducted over 1 week, from November 9th to 13th, 2020 by John Mardlin and Nicholas Ward. A total of 10 person-days were spent.

During the course of the engagement we reviewed the code manually, as well as using fuzzing tests to assess particular properties (see Appendix 1).

We found that the system was well specified and thoroughly tested, and the clients goals were clearly laid out for us.

2 Scope

Our review initially focused on the commit hash d0e884fae6a8342f5464086db0d8205479b0ef78. We also reviewed several pull requests, which resulted in a final commit hash of 3daeedb029ef4642e82550a24726875675284bb3.

2.1 Objectives

The client provided the following list of objectives for the contract system. Confirming that these objectives are met by the current system was included as a key part of the review.

  1. Optimize deploy gas usage for the depositor proxy.
  2. Optimize run-time gas usage for the ETH deposit to deposit address path.
  3. Allow killing the ExchangeDeposit contract, which should cause all future ETH deposits to fail.
  4. Support ERC20 deposits by allowing them to be moved to the coldAddress. The gas cost for this should be somewhere in the 50k gas range.
  5. If the contract is killed, retrieved ERC20 deposits should be sent to the adminAddress.

3 Recommendations

3.1 Move deployNewInstance() into a separate factory contract


The deployNewInstance() function is used to deploy depositor proxy contracts from the ExchangeDeposit. In the interest of simplifying the core logic and minimizing attack surface, a separate factory contract should be used to deploy these proxies.

3.2 Replace exchangeDepositorAddress()


The function exchangeDepositorAddress() is used for two purposes:

  1. To find the address of the main ExchangeDeposit implementation where mutable values such as the coldAddress are stored.

  2. To determine the context of the current call.

The first introduces unnecessary complexity and could be replaced with a address immutable exchangeDeposit value set in the constructor. This would make the address of the main ExchangeDeposit implementation part of the deployed bytecode.

The second is used to enforce important properties such as the restriction of storage writes to the context of the ExchangeDeposit contract. However, it can lead to invalid assumptions about the caller and call context and could be replaced by a much simpler check.

Instead of comparing the bytecode contained at address(this) to that of the depositor proxy, ExchangeDeposit should compare address(this) to the immutable exchangeDeposit address mentioned above. This allows the contract to determine whether or not its code is running in the context of its own address.


By addressing the two uses of exchangeDepositorAddress() with simpler methods, the amount of low-level assembly can be reduced significantly, invalid assumptions about the source and context of the call can be avoided, and the depositor proxy implementation can be decoupled from the ExchangeDeposit implementation.

3.3 More optimizer rounds will save more gas

Increasing the number of optimizer runs in truffle-config.js can save a small amount of gas on common operations.

3.4 Separate isExchangeDepositor() into two functions

The name isExchangeDepositor() suggests that it should return a boolean, but it also returns the exchangeDepositorAddress. Separating this into two functions should make the logic more readable.

This function can also be simplified by comparing address(this) to an immutable address type determined during deployment.

4 Security Specification

This section describes the expected behavior of the system under audit from a security perspective. It is not a substitute for documentation. The purpose of this section is to identify specific security properties that were validated by the audit team.

4.1 Actors

The relevant actors are listed below with their respective abilities:

  • Admin: A single admin address is set in the constructor. The Admin may take the following actions if and only if the ExchangeDeposit is “alive” (coldAddress != 0x0):
    • Change the coldAddress
    • Change the implementation address
    • Change the minimumInput
    • Stop standard deposits and future admin actions by calling kill()
  • Depositor: For each depositor, a proxy contract is deployed with the address of the main ExchangeDeposit implementation hardcoded as the recipient of all calls from the proxy. A depositor proxy may take the following actions:
    • CALL to ExchangeDeposit to make a deposit in ETH
    • DELEGATECALL to any function not modified by onlyExchangeDepositor

4.2 Trust Model

In any system, it’s important to identify what trust is expected/required between various actors. For this audit, we established the following trust model:

  • Depositors trust the Admin with the ability to redirect or block deposits, adjust the minimum deposit amount, and run arbitrary code in the context of any depositor proxy contract.

We note that although this is a high level of trust, it is in line with the trust inherent in using a centralized exchange.

4.3 Security Properties

The following is a non-exhaustive list of security properties that were verified in this audit:

  • The depositor proxy:
    • Makes no calls or delegatecalls to any address except the target address contained in its bytecode.
    • Calls to ExchangeDeposit if and only if no calldata is provided.
    • Delegatecalls to ExchangeDeposit if and only if at least one byte of calldata is provided.
  • No storage writes are made in ExchangeDepositor except within functions callable only by the adminAddress.
  • The “killed” state (coldAddress == 0x0) can not be reverted.
  • None of the existing functions in ExchangeDepositor can be used to modify the storage of a depositor proxy whose target is the main ExchangeDepositor instance.
    • Note that this property only holds for the ExchangeDepositor which we reviewed, and even then it would be possible for the admin to set an implementation address which can write to the proxy’s storage.

5 Findings

Each issue has an assigned severity:

  • Minor issues are subjective in nature. They are typically suggestions around best practices or readability. Code maintainers should use their own judgment as to whether to address such issues.
  • Medium issues are objective in nature but are not security vulnerabilities. These should be addressed unless there is a clear reason not to.
  • Major issues are security vulnerabilities that may not be directly exploitable or may require certain conditions in order to be exploited. All major issues should be addressed.
  • Critical issues are directly exploitable security vulnerabilities that need to be fixed.

5.1 ERC20 tokens with no return value will fail to transfer Major ✓ Fixed


This issue was addressed using OpenZeppelin’s SafeERC20.


Although the ERC20 standard suggests that a transfer should return true on success, many tokens are non-compliant in this regard.

In that case, the .transfer() call here will revert even if the transfer is successful, because solidity will check that the RETURNDATASIZE matches the ERC20 interface.


if (!instance.transfer(getSendAddress(), forwarderBalance)) {
    revert('Could not gather ERC20');


Consider using OpenZeppelin’s SafeERC20.

Appendix 1 - Fuzz Testing of Depositor Proxy

In addition to manual inspection of the code, the correctness of the bytecode implementation of the depositor proxy contract was assessed using Harvey, our in-house greybox fuzzer for smart contracts (see for more details). Using a custom testing harness, the proxy was fuzzed for approximately 15 hours, resulting in over 2 million unique testing inputs.

For each input, important security properties of the proxy were checked. No violations of these properties were detected during the fuzzing campaign.

While this method of testing allowed for the behavior of the proxy contract to be evaluated with a large number of inputs, it is important to understand the limitations of this approach. The following should be carefully considered in assessing the results of this analysis:

  • The fact that every possible path could not be explored, particularly as it relates to the external call made by the proxy.
  • The limited number of properties that could be checked given time constraints.
  • The possibility of an error in the fuzzing harness, the assertions of important properties, or the fuzzer itself.

Appendix 2 - Disclosure

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