Ethereum Introduces New Smart Contract Standard for DeFi Audits
Ethereum (ETH) developers have proposed a new smart contract standard called ERC-7512, which aims to improve transparency and accessibility to smart contract audits for decentralized finance (DeFi) protocols. The proposal, posted on the Ethereum Magicians forum, has sparked discussions among developers.
The main goal of ERC-7512 is to create an on-chain representation of audit reports that can be parsed by contracts. This will allow users to extract relevant information about the audits performed, including the auditors involved and the verified standards. The objective is to provide strong security guarantees and enable better composability by verifying on-chain that a contract has been audited.
Developers Discuss Implementation of ERC-7512
While the proposal has received support from the community, developers are engaged in detailed discussions about its implementation. Dexara, founder of Callisto Network, suggested an alternative approach using a registry that organizes audits through non-transferable Soulbound Tokens instead of introducing a new Ethereum standard.
In response, Meissner proposed using the ERC within the context of a registry, cautioning against excessive centralization. Shay Zluf added that the focus should be on standardizing what auditors should sign rather than defining the registry itself.
Meissner also noted that while security audits are valuable, they do not guarantee flawless code for protocols. As an example, the recent launch of BANANA experienced a bug in its smart contract shortly after deployment, despite claims of undergoing two audits by the team. A Twitter user ran BANANA’s code through an AI chatbot, which quickly identified the problem.
Ethereum Devs Delay Launch of Holesky Testnet
The launch of the Holesky testnet by Ethereum developers had to be delayed due to a parameter mismatch. Nethermind, an Ethereum client team, expects to relaunch the testnet in one week’s time. However, a GitHub pull request suggests the relaunch should occur on September 28, according to Barnabus Busa, a DevOps engineer for the Ethereum Foundation.
Paritosh, an Ethereum Foundation DevOps engineer, stated that it is highly likely the network will be relaunched with new genesis files and be up and running in approximately two weeks.
Hot Take: ERC-7512 Enhances DeFi Audits on Ethereum
The introduction of the ERC-7512 smart contract standard on Ethereum is a significant step towards enhancing transparency and accessibility to smart contract audits for DeFi protocols. By creating an on-chain representation of audit reports that can be parsed by contracts, users can easily extract relevant information about audits, including auditors and verified standards. This standardization aims to provide strong security guarantees and improve composability by enabling on-chain verification of audited contracts.
While discussions continue among developers regarding the implementation of ERC-7512, alternative approaches are being explored. It is important to strike a balance between decentralization and efficiency when utilizing registries for organizing audits. Furthermore, it is crucial to recognize that security audits do not guarantee flawlessness in code. The recent incident with BANANA highlights the need for comprehensive testing and verification beyond audits.
Overall, ERC-7512 represents a significant step forward in improving the security and trustworthiness of DeFi protocols on Ethereum.
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