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ci: standardize pytest invocation and add security scanning 
- Changed pytest calls to use `venv/bin/python -m pytest` with explicit config
- Added `--rootdir "$PWD"` and `--import-mode=importlib` for consistent imports
- Fixed PYTHONPATH to use absolute paths with $PWD prefix
- Added smart contract security scanning for Solidity files
- Added Circom circuit security checks for ZK proof circuits
- Added ZK proof implementation security validation
- Added contracts/** to security scanning workflow
2026-05-11 13:46:42 +02:00

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description
description
Smart Contract Security Sprint - Dedicated remediation for contract-level findings

Smart Contract Security Sprint

This document outlines the dedicated security sprint for addressing smart contract-level security findings deferred from the initial remediation phase.

Sprint Overview

Status: ⏳ Not Started
Sprint Duration: 2-3 weeks
Scope: 8 security findings (5 High, 3 Medium)
Components: AgentStaking.sol, AIServiceAMM.sol, EscrowService.sol, AIToken.sol

Deferred Findings

High Severity (5 findings)

1. No Slashing Mechanism in AgentStaking.sol

Finding ID: SC-H-01
Component: contracts/contracts/AgentStaking.sol
Status: Open

Description: The contract has a SLASHED status enum but no actual slashing implementation. Malicious agents can act without consequences.

Required Changes:

  • Implement slashing logic based on performance metrics
  • Add slashing conditions (e.g., accuracy below threshold, missed jobs)
  • Add slashing governance mechanism
  • Implement appeal process for slashed agents
  • Add slashing rewards to reporters

Testing:

  • Unit tests for slashing conditions
  • Integration tests for slashing execution
  • Governance tests for slashing approval

2. Lack of Oracle Manipulation Protection in AgentStaking.sol

Finding ID: SC-H-02
Component: contracts/contracts/AgentStaking.sol
Status: Open

Description: The updateAgentPerformance function (line 429) lacks oracle authorization checks. Any caller can update performance metrics.

Required Changes:

  • Add authorized oracle list with governance control
  • Implement oracle signature verification
  • Add time delay for performance updates
  • Implement oracle rotation mechanism
  • Add oracle reputation scoring

Testing:

  • Oracle authorization tests
  • Performance update validation tests
  • Oracle rotation tests

3. AMM Vulnerable to Flash Loan Attacks in AIServiceAMM.sol

Finding ID: SC-H-03
Component: contracts/contracts/AIServiceAMM.sol
Status: Open

Description: The AMM lacks TWAP (Time-Weighted Average Price) protection against flash loan manipulation.

Required Changes:

  • Implement TWAP price oracle
  • Add price deviation limits
  • Implement flash loan detection
  • Add minimum time delay for swaps
  • Implement circuit breaker for abnormal price movements

Testing:

  • Flash loan simulation tests
  • Price manipulation tests
  • TWAP validation tests

4. No Front-Running Protection in AIServiceAMM.sol

Finding ID: SC-H-04
Component: contracts/contracts/AIServiceAMM.sol
Status: Open

Description: The AMM lacks front-running protection for trades.

Required Changes:

  • Implement commit-reveal scheme
  • Add minimum block delay for trade execution
  • Implement trade batching
  • Add maximum price deviation protection
  • Consider MEV-resistant design patterns

Testing:

  • Front-running simulation tests
  • Commit-reveal tests
  • Trade batching tests

5. Emergency Withdraw Without Timelock in AIServiceAMM.sol

Finding ID: SC-H-05
Component: contracts/contracts/AIServiceAMM.sol
Status: Open

Description: Emergency withdraw functions lack time delays, allowing immediate fund extraction.

Required Changes:

  • Add time delay (e.g., 48 hours) for emergency withdraw
  • Implement governance approval requirement
  • Add notification system for pending emergency actions
  • Implement multi-signature requirement
  • Add cancel mechanism for pending emergency actions

Testing:

  • Time delay tests
  • Governance approval tests
  • Multi-sig tests

Medium Severity (3 findings)

6. Oracle Single Point of Failure in EscrowService.sol

Finding ID: SC-M-01
Component: contracts/contracts/EscrowService.sol
Status: Open

Description: Conditional release mechanism relies on single oracle verification (line 437).

Required Changes:

  • Implement multi-oracle verification with threshold (e.g., 2/3)
  • Add oracle reputation system
  • Implement dispute resolution for oracle decisions
  • Add time delay after oracle verification before release
  • Consider decentralized oracle network integration

Testing:

  • Multi-oracle threshold tests
  • Dispute resolution tests
  • Time delay tests

7. No Minimum Voting Threshold for Emergency Release in EscrowService.sol

Finding ID: SC-M-02
Component: contracts/contracts/EscrowService.sol
Status: Open

Description: Emergency release voting only requires 3 total votes and simple majority (line 612).

Required Changes:

  • Implement percentage-based threshold (e.g., 66% of total arbiters)
  • Add minimum quorum requirement based on escrow amount
  • Implement arbiter staking to prevent sybil attacks
  • Add voting weight based on arbiter reputation
  • Implement time lock after approval before execution

Testing:

  • Threshold calculation tests
  • Quorum requirement tests
  • Arbiter staking tests

8. No Rate Limiting on Staking Operations in AgentStaking.sol

Finding ID: SC-M-03
Component: contracts/contracts/AgentStaking.sol
Status: Open

Description: Staking contract has no rate limiting on operations.

Required Changes:

  • Add rate limiting on stake creation (e.g., max 10 stakes/day)
  • Implement minimum stake amounts
  • Add maximum number of stakes per user
  • Implement gas optimization for batch operations
  • Add cooldown periods between operations

Testing:

  • Rate limiting tests
  • Minimum stake tests
  • Maximum stake count tests

Sprint Timeline

Week 1: Planning and Development

  • Day 1-2: Sprint planning, design review, test strategy
  • Day 3-5: Implement High severity findings (SC-H-01, SC-H-02)
  • Day 6-7: Unit testing for implemented fixes

Week 2: Development and Testing

  • Day 8-10: Implement remaining High severity findings (SC-H-03, SC-H-04, SC-H-05)
  • Day 11-12: Implement Medium severity findings (SC-M-01, SC-M-02, SC-M-03)
  • Day 13-14: Integration testing

Week 3: Review and Deployment

  • Day 15-16: Code review, security review
  • Day 17-18: Audit preparation, documentation
  • Day 19-20: Deployment to testnet, final testing

Migration Strategy

For Existing Deployments

Option A: Contract Upgrade via Proxy

  • Deploy new implementation contracts
  • Update proxy to point to new implementation
  • Migrate state if necessary
  • Requires governance approval

Option B: New Deployment

  • Deploy new contracts
  • Migrate users/stakes to new contracts
  • Deprecate old contracts
  • More complex but cleaner

Recommended: Option A for minimal disruption

Testing Strategy

  1. Unit Tests

    • Test each fix individually
    • Test edge cases and boundary conditions
    • Test failure modes

  2. Integration Tests

    • Test contract interactions
    • Test governance flows
    • Test upgrade mechanisms

  3. Security Tests

    • Re-run security scanning on new code
    • Manual security review
    • Third-party audit (if budget allows)

  4. Performance Tests

    • Gas cost analysis
    • Benchmark critical operations
    • Optimize if necessary

Risk Assessment

High Risks

  • Contract upgrade failure: Mitigate with thorough testing and rollback plan
  • State migration issues: Mitigate with comprehensive migration tests
  • Governance approval delays: Plan timeline accordingly

Medium Risks

  • Gas cost increases: Optimize critical paths
  • User confusion during migration: Clear communication and documentation
  • Testing timeline overrun: Buffer time in schedule

Success Criteria

  • All 8 findings resolved and tested
  • Unit test coverage > 90% for modified contracts
  • Integration tests passing
  • Security review completed
  • Migration to testnet successful
  • Documentation updated
  • Governance approval obtained

Deliverables

  1. Code Changes

    • Modified smart contracts
    • Migration scripts (if needed)
    • Upgrade contracts (if using proxy pattern)

  2. Documentation

    • Updated contract documentation
    • Migration guide
    • API changes documentation
    • Security review report

  3. Testing

    • Unit test suite
    • Integration test suite
    • Test results report

  4. Deployment

    • Testnet deployment
    • Mainnet deployment plan
    • Rollback plan

Related Files

Smart Contracts:

  • contracts/contracts/AgentStaking.sol
  • contracts/contracts/AIServiceAMM.sol
  • contracts/contracts/EscrowService.sol
  • contracts/contracts/AIToken.sol

Documentation:

  • docs/security/audit-findings.md - Original findings
  • docs/security/remediation-plan.md - Overall remediation plan
  • contracts/docs/ - Contract documentation

CI/CD:

  • .gitea/workflows/smart-contract-tests.yml - Contract testing workflow
  • contracts/deployments-aitbc-cascade.json - Deployment configuration

Verification Checklist

  • Sprint planning completed
  • Design review completed
  • All 8 findings implemented
  • Unit tests written and passing
  • Integration tests written and passing
  • Security review completed
  • Gas cost analysis completed
  • Migration strategy defined
  • Testnet deployment successful
  • Mainnet deployment plan approved
  • Documentation updated
  • Governance approval obtained