Authors

ChopChop

Glossary

C4 DAO DeFi

Summary

This proposal is intended to cover costs associated with the scheduled security review using Code Arena (C4) for v2 of NFTX Protocol, listed under the specifications of this proposal.

Rationale

With the protocol squad working heads down on v2 of the NFTX protocol, which will introduce many additional improvements & features such as fee capture, comes the need for a thorough security review. With the protocol holding millions worth of NFT collateral in its vaults, security reviews are of the utmost importance to do right.

We believe that Code Arena is a good supplier to perform this security review on a short-term basis. Scott has been in contact with the C4 organization and as it stands we have a slot reserved for May 2021. This timing is in line with the needs from our side to roll out v2 without introducing unnecessary delays.

Effect

Opportunity

• By locking down our slot of running a security review with Code Arena we will not introduce delays on launching v2 of the protocol, strengthening our lead as an NFT/DeFi protocol.
• As Code Arena is an open security review program, we will strengthen our position as an open organization and encourage additional developers to learn about the potential NFTX brings to the ecosystem.

Risk

• None identified

Specifications

Performing a code review through Code Arena brings us:

• Multiple solidity experts will review the protocol to find vulnerabilities before deployment
• Engineers that participate in the contest will become familiar with our protocol, and that may make them comfortable integrated NFTX in other projects they contribute to
• Some marketing from Code Arena as they publicize the contest.

Funding request - Yes - Implementation Requires Funding

• In order to fund the security review contest, we will be required to pay Code Arena 80,000 USD (eighty thousand) worth of ETH in advance of the competition. This amount is to cover base costs, gas optimization, judging, and organization fees.

These funds are to be paid upfront after the vote passes.

Communication

• Discord: https://discord.gg/xcJkxMXSR8
• Code Arena Website: https://code423n4.com
• Forums: https://forum.nftx.org/t/draft-proposal-xip-8-security-review-of-v2-through-code-arena/210

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. For changes to the NFTX contract, more than 70% of voting tokens must vote FOR for the XIP to pass.