The Element Group team asked us to review and audit their Enigma Token contract. We looked at the code and now publish our results.

The audited contract is in the element-group/enigma-erc20-smart-contract repository. The version used for this report is the commit 9b6a6edab5eaf79242cc59d705f8b315657f87b7.

Here’s our assessment and recommendations, in order of importance.

Update: The Element Group team has followed most of our recommendations and updated the contracts. The new version is at commit 54e37d2d6b02579305eb0d9e9f8f795d5a0bd23f.

Low Severity

No Transfer for initial supply creation

Consider emitting an event Transfer(0x0, msg.sender, INITIAL_SUPPLY) in the constructor. This is consistent with the recommended behavior for token creation, and will improve the user experience. For example, the created token amount will be immediately displayed in the Etherscan token interface.

Update: Event added in 84412e9.

ERC20 compliance

Although a minor problem, the decimals state variable should be defined with type uint8 to be compliant with ERC20.

Additionally, the version of OpenZeppelin used for Enigma (1.2.0) included a restriction to the usage of approve that has been deemed non-compliant and was removed in the next version. Consider upgrading to OpenZeppelin 1.3.0.

Update: Fixed in a09d58c.

Notes & Additional Information

• Additionally to the mentioned 1.3.0 changes, the modifications done in the Enigma token to transfer, transferFrom, and approve have all been included in this latest version. If OpenZeppelin were upgraded, these functions could safely be removed and fall back to OpenZeppelin’s implementation.
  Update: Updated to 1.3.0 in ac20729.

Conclusion

No severe issues were found. Some changes were proposed to improve standards compliance, follow best practices and reduce potential attack surface.

Note that as of the date of publishing, the above review reflects the current understanding of known security patterns as they relate to the Enigma Token contract. We have not reviewed the related Enigma project. The above should not be construed as investment advice. For general information about smart contract security, check out our thoughts here.