xBacked

Algorand Smart Contract Audit

About

xBacked is a decentralized stablecoin platform on the Algorand blockchain, featuring an over-collateralized stablecoin, xUSD. Our team conducted a comprehensive audit of its smart contracts.

Industry

Fintech & crypto

Project duration

March – May 2022

Project scope

Smart Contract Audit

Remediation Audit

Technology

Reach, TEAL

Background

xBacked introduced xUSD, a decentralized stablecoin governed by a DAO and backed by ALGO, Algorand's native cryptocurrency. Unlike traditional stablecoins backed by centralized assets, xUSD's issuance relies entirely on smart contracts, drawing inspiration from Ethereum's DAI stablecoin.

Challenge

Stablecoins serve as a bridge between the volatile crypto market and the stability of fiat currencies. However, maintaining their value peg is crucial; any deviation can lead to significant, unforeseen losses. Our audit aimed to thoroughly understand and ensure the reliability of xBacked's smart contracts by:

Assessing the security posture, including the company's controls and processes to defend against cyber threats.

Evaluating the maturity, adequacy, and efficiency of security measures.

Identifying potential security vulnerabilities and confirming their resolution.

The audit was performed on xBacked's private GitHub repository.

Results of the collaboration

Our audit identified various security vulnerabilities, classified by severity:

  • Critical: 2
  • High: 5
  • Medium: 5
  • Low: 3
  • Informational: 1

We worked closely with the xBacked team to address these issues. After implementing the recommended fixes, we conducted a follow-up review to ensure all changes were correctly applied.

Impact

The xBacked smart contract audit was a crucial step in ensuring the platform's security and reliability. By addressing the identified issues, xBacked can offer a stable and secure stablecoin solution within the Algorand ecosystem. For detailed insights, refer to the full audit report.

Key features

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