Volatility Technologies Ltd

Summary

Relative finance, in a high-level overview, is a DeFi platform that allows users to bet on the relative increase in prices between two asset classes. To be able to bet against each other, a user can create a "lot" that specifies which asset classes are involved in the bet. There are two modes: a challenger mode where a user has a 1v1 bet against another user, and a multiplayer mode, where multiple users can each put a wager on their preferred asset class. The winner(s) of the lot is decided by which asset class outperforms the other, in terms of their relative increase in price for a given start and end time. Quantstamp conducted the audit with three auditors working independently on a best-effort basis. This audit focuses on the accounting of the rewards as well as the interaction with the price feed. Of particular note is that the proper functionality of the system heavily depends on the availability and accuracy of the price feed, which is maintained by the Relative Finance team. We describe the implications of this in more detail in REL-13. The team identified issues of various levels of severity. In addition, this report provides several best practice recommendations and raises concerns regarding several issues in the documentation. The tests are well-written. In particular, the test suites show that the current branch coverage is at an acceptable level of around 91%. Still, we recommend projects to have full branch coverage at 100%. While there is some user-facing documentation describing the high-level overview of the system, detailed technical documentation is lacking. We recommend adding more public-facing documentation on the technical details of the system before deploying. **Update** All issues have been either fixed, mitigated, or acknowledged by the Relative Finance team.