Orderly
Security-review case study
“As a security audit company, Protocol Defence's approach to security and overall effectiveness is truly exceptional. Working with them has been a revelation – their auditors are among the best we've ever collaborated with.”
Slava GerashankoOrderly Network
Overview
This page sets out the Protocol Defence security-review process and covers a review between the Protocol Defence team and Orderly Network.
Protocol Defence
Protocol Defence is a Smart Contract security service provider recasting the usual review model with two competing internal Protocol Defence teams, Smart Contract fuzzing, and a pay-per-vulnerability pricing option. Protocol Defence’s novel approach effectively incentivizes their security team to uncover as many vulnerabilities as possible and leave no stone unturned.
Orderly
Orderly is a white label Orderbook trading infrastructure on the NEAR, Arbitrum, and Optimism networks boasting over $500,000,000 in total trading volume and 70,000+ active traders.
Why teams pick Protocol Defence
Protocol Defence brings a security team with extensive experience in banking, DeFi, economics, trading, and software correctness. As Orderly Network was launching the Smart Contract infrastructure for their EVM compatible perpetual derivatives offering, it was essential to engage a team with rigorous experience with perpetual products. Having spent over a year performing security analysis on the GMX V2 perpetuals system among other perpetual derivatives protocols, Protocol Defence was a clear choice.
Some of the best auditors we have worked with. The team is very prompt with communication, their domain expertise in DeFi, specifically derivatives, is unparalleled.
Slava GerashankoOrderly Network
The Report
Walking through the security review
In the 2 week period from October 1st to October 13th, Orderly engaged Protocol Defence to perform a security review of their perpetuals protocol utilizing an off-chain order book. During the review 3 security researchers spent a total of 6 person weeks to uncover multiple Critical & High severity findings in the project.
The kickoff
The engagement officially began on October 1st with a kickoff call between Protocol Defence and Orderly. During the kickoff call, members from Orderly Network shared an overview of the perpetuals system and answered probing questions from Protocol Defence security researchers.
While on the kickoff call, members from Protocol Defence confirmed the first finding with the Orderly team, a Critical logic error in the system Ledger contract, LGR-1.
“During the kickoff, the Protocol Defence team came prepared with precise questions, instilling confidence in their capabilities.”
Slava GerashankoOrderly Network
The research
Following the kickoff call, the Protocol Defence team focused first on gaining a deep understanding of the codebase, constructing diagrams and carrying out internal discussions on the behavior of the system.
Following these discussions, Protocol Defence identified several key points in the Orderly system which were vulnerable to exploitation. These findings were immediately shared with the Orderly team using a shared Notion database for the engagement.
The Testing
After gaining a strong understanding of the logic of Orderly’s Smart Contract system and having pressure-tested it against manual efforts, Protocol Defence elected to conduct further assurance on the system with both stateful and stateless fuzzing efforts.
Protocol Defence’s fuzzing efforts proved to be fruitful as they found more findings such as ATPH-2 & ATPH-4 which were promptly shared with the Orderly team.
The fix pass
While Protocol Defence continued to conduct the security review, Orderly engineers were able to implement the recommendations made — as these findings and recommendations were sent across the review.
After completing the two week period focusing on the frozen commit, Protocol Defence conducted a comprehensive review of the remediations made by Orderly. Systematically, Protocol Defence verified that the remediations made resolved the issues found and did not introduce any new issues.
”From the very beginning, it was a seamless process. Within just a few days, they found all issues, and their rapid review of fixes further underscores their efficiency.”
Slava GerashankoOrderly Network
Results
Throughout the 2 week engagement, Protocol Defence found 3 Critical, 2 High, 17 Medium, and 19 Low findings which were remediated by the Orderly team and promptly reviewed by Protocol Defence.
Protocol Defence’s attention to detail and immense verification efforts were key in preparing the codebase for a successful launch, garnering 8 figures of TVL seamlessly.
“Protocol Defence’s swift and clear communication is a testament to their commitment, and their unparalleled domain expertise in DeFi sets them apart.”
Slava GerashankoOrderly Network