TELxIP – Secondary Audit for Uniswap V4 Hook Smart Contract

Abstract This proposal seeks approval from the TELx Council to fund a secondary third-party security audit of the custom Uniswap V4 hook smart contract that manages TEL reward distribution to LPs in the TEL/ETH (and future TELx Uniswap V4) pool(s) on Polygon and other EVM-compatible networks. This follow-up audit is being conducted by Cantina to validate the fixes and improvements made after the initial audit and ensure complete security assurance prior to deployment. The audit cost is $24,375 USDC, to be paid from the proceeds of TEL sold from the TELx Council Safe.

Specification Scope: A re-audit of the finalized version of the Uniswap V4 hook contract that programmatically manages TEL reward distribution based on LP behavior. The audit will cover all updates made in response to the original findings from the first Cantina audit.

Auditor: Cantina – Ethereum multisig: cantina.eth (0x3Dcb7CFbB431A11CAbb6f7F2296E2354f488Efc2)

Code Repository:

github.com GitHub - Telcoin-Association/telcoin-laboratories-contracts at... 13-uniswap-v4-hook-integration-with-on-chain-position-tracking-and-reward-distribution

Telcoin Association Smart Contracts. Contribute to Telcoin-Association/telcoin-laboratories-contracts development by creating an account on GitHub.

Timeline:

Audit Start: July 3, 2025

Audit Duration: 3 days + 0.5-day remediation review

Final Report: Delivered upon payment and client sign-off

Payment Method: $24,375 USDC, sourced from the TELx Council Safe via TEL sale to an external wallet, then paid directly to Cantina.

Motivation The TEL/ETH Uniswap V4 pool forms the foundation of the next generation of TELx liquidity. Its hook contract governs the logic behind TEL incentives and interacts directly with user-deposited assets and staking behavior. Following the completion of the first audit, this second audit ensures that all recommended changes were implemented correctly and that no vulnerabilities remain.

With security being a core priority of the Telcoin Association, this second audit represents a best-practice approach to safeguarding community funds and reinforcing trust in TELx infrastructure.

Rationale This proposal:

Confirms implementation of all prior audit fixes and ensures no regressions

Strengthens the credibility of TELx infrastructure via multiple security reviews

Reduces the risk of critical bugs in reward distribution logic prior to deployment

Establishes a precedent for rigorous audit protocols in all future TELx contract deployments

Cantina will conduct the audit transparently in a shared GitHub repository, and the final report will be published upon completion (with sensitive information redacted as needed).

Implementation Responsible Parties:

Proposal Author: Andrew_Pinch

Smart Contract Developer: Amir Shirif

Audit Partner: Cantina

Execution Steps:

Execute TEL transfer from the TELx Safe to a designated external wallet for USDC sale

Transfer $24,375 USDC to cantina.eth

Provide final commit hash to Cantina

Cantina conducts security review and remediation check

Developer implements any final recommendations if applicable

Publish final audit report for community transparency

Expected Outcomes Secure and production-ready Uniswap V4 hook contract

Verified implementation of prior audit recommendations

Transparent audit process and documented results

Reinforced trust in TELx’s approach to smart contract security

Budget & Funding Source Amount Requested: $24,375 USDC

Payment Method: Sale of TEL from the TELx Council Safe

Offset by Existing Budget: Audit funding utilizes emissions saved from the deprecation of TEL/BAL, TEL/DFX/USDC, and TEL/WPOL pools, which released ~8.34M TEL/month previously allocated to incentives.

Precedent This proposal continues the TELx Council’s commitment to deploying only audited, secure smart contracts and sets the standard for all future protocol improvements requiring third-party validation.