XIP#43 Clear budget for two protocol audits for NFTX V3

Authors

• Javery

Glossary

• CodeArena (C4)

• DAO

• Defi

• Spearbit

Summary

This proposal is intended to clear a code audit budget associated with two scheduled security reviews by Spearbit and Code Arena (C4) of NFTX V3 protocol.

Rationale

Since V2 of the NFTX protocol was launched and subsequent features have been released the team have reworked the protocol to allow for wholesale improvements across the NFTX platform.

We are projecting an increased demand in the protocol usage on the release of V3, and the existing NFTX V2 users to migrate their inventory and liquidity to the new protocol.

We have previous experience with C4 from XIP#8 Security Review and we planning to use C4 again which will follow on from the full audit secured with Spearbit.

Effect

Opportunity

• By locking down our slots of running audits with Code Arena and Spearbit we have an extra set of eyes of the new protocol which will run in isolation from the existing V2 protocol.

Risk

• Bugs in the smart contracts are not found during the audits and additional capital is required through our bug bounty program](https://docs.nftx.io/smart-contracts/bug-bounty).
• C4 are unable to provide a quote without the completed set of contracts (due end of June), they may recommend a higher bounty than we have provisioned ($66k).

Specifications

Clear a budger for two audits with Spearbit and C4. This brings us

• Multiple solitity experts will review the protocol to find vulnerabilities before deployment
• Engineers that participate in the contest will become familar with our protocol, and that may make them comfortable integrating NFTX V3 into other projects they contribute towards
• Some marketing from C4 as they publicise the contest
• Official audit deliverables to refer to from Spearbit

Funding request - Yes

• In order to fund the security review contest, we will be required to pay Spearbit $234,000 USD (two hundred thirty four thousand) and C4 $66,000 (sixty six thousand), totaling $300,000 (three hundred thousand). This amount is to cover all costs associated with both audits.

The funds are to be paid upfront to Spearbit after the vote passes, and to C4 once they confirm the contest amount.

Communication

• Discord NFTX
• CodeArena (C4) https://code4rena.com/
• Spearbit https://spearbit.com/

Quorum

• Minimum Quorum: More than 10% of circulating, non-treasury NFTX must participate for a proposal to Pass.
• Passing Threshold: More than 50% of voting tokens must vote FOR for the XIP to Pass.