Crypto Analyzer

Liquid Staking Derivatives (LSD) Completes Smart Contract Issues, Anticipates Platform Release Soon

Liquid Staking Derivatives (LSD), the digital token that saw a dramatic fall in price from $2 to $0.06, has begun to show signs of recovery. Following a recent tweet, the price has gradually been on an upward trend.

The company stated via Twitter:

Solidity Finance, an independent firm that reviews blockchain projects, recently audited the LSD Staking smart contracts and confirmed that all reported issues have been resolved. Their audit included the review of multiple contracts related to the staking of LSD tokens on the Ethereum Mainnet.

The audit took place on April 28, 2023, with updated contracts and addresses checked on May 19, 2023, and a final reduction in scope on May 24, 2023. The scope reduction was due to the LSD team’s decision to remove the LSDTokenLSETH contract from the audit report. This was in response to the contract’s reported unsafe behavior, which the team intends to redesign.

The audit initially flagged several issues, all of which have been subsequently resolved. Notably, there was a high-risk issue regarding LSDDepositPool’s withdrawEther() function. This function was found to always withdraw from the current provider, creating a potential risk for users. If a user’s deposit was routed to a different provider, and the current provider didn’t have sufficient liquidity, they could be unable to withdraw. The solution was to update the LSDDepositPool to support only one provider.

Other issues identified in the audit were of lower risk. One involved the LSDTokenVault, which did not separate deposited token balances from reward tokens, potentially creating an issue where users could withdraw another user’s deposited tokens as rewards. The LSD team resolved this by implementing a LSDRewardsVault contract.

Despite these challenges, the contracts are deemed secure as they’re implemented with Solidity v0.8.0, which prevents any possible overflows or underflows.

With the audit issues resolved, the LSD team is now focused on the upcoming platform release. The LSD platform will allow users to stake LSD tokens with various providers, enabling them to earn rewards over time.

While it’s still early days, the signs of recovery and the impending platform release are positive steps forward for LSD. Stakeholders and users will now look forward to seeing the impact of these developments on the token’s market value.