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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: 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