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Liquidium WTFLiquidium WTF

Security & Audits

Review Scalebit's Bitcoin protocol audit and the trust assumptions behind Liquidium.WTF loans.

Overview

In July 2024, Liquidium.WTF underwent a comprehensive security audit conducted by Scalebit, a trusted blockchain security firm. The audit was designed to ensure the security and robustness of Liquidium.WTF's core Bitcoin logic and peer-to-peer lending platform, focusing on Discreet Log Contracts (DLCs), multi-signature (multisig) escrows, and Partially Signed Bitcoin Transactions (PSBT).

Audit Details

  • Audit Firm: Scalebit (Twitter)

  • Audit Period: July 2, 2024 – August 15, 2024

  • Audited Areas:

    • Bitcoin-based technologies integral to Ordinals, Runes, and BRC20 lending/borrowing.

    • Key components of Liquidium.WTFs core architecture and oracle mechanisms.

  • Methods: The audit employed a combination of:

    • Dependency checks

    • Static code analysis

    • Manual code reviews

Key Findings

The audit reviewed the entire architecture and processes related to Liquidium.WTF’s peer-to-peer lending protocol. A total of 11 issues were identified, categorized by severity:

  • Critical Issues: 2 (both resolved)

  • Major Issues: 2 (both resolved)

  • Medium Issues: 3 (2 resolved, 1 acknowledged)

  • Minor Issues: 2 (1 resolved, 1 acknowledged)

  • Informational Issues: 2 (both resolved)

No critical issues were left unresolved, and all other identified issues were either resolved or acknowledged as non-blocking.

Security Strengths

The audit confirmed the security of Liquidium.WTF's key components, including:

  • Bitcoin Logic: The audit verified that Liquidium.WTF's system uses secure, decentralized escrow mechanisms via multisig.

  • DLC and PSBT: Both technologies were reviewed for potential vulnerabilities, with the audit confirming the system’s strength in handling Bitcoin transactions securely, while ensuring that the 2-of-3 multisig model, which includes the oracle, provides a balanced approach to decentralization and trust.

  • Core Lending Logic: The foundational logic for Ordinals, Runes, and BRC20 lending was found to be secure and robust for peer-to-peer lending activities.

Conclusion

The audit by Scalebit found no critical vulnerabilities that compromise Liquidium.WTF’s platform. All identified issues were promptly addressed to ensure the system remains secure for users.