Skip to main content
Understanding smart contract risks and how TED Protocol mitigates them Smart contracts are immutable code deployed on blockchains. While they enable trustless operations, they carry inherent risks.

​
Risk Types

​
Code Vulnerabilities

Bugs or logic errors could lead to loss of funds.
  • Types: Reentrancy attacks, integer overflow, access control failures, logic errors
  • Mitigations:
    • Multiple independent audits
    • Battle-tested OpenZeppelin libraries
    • Extensive testing (unit, integration, fuzzing)
    • Active bug bounty program

​
Upgrade Risks

Upgradeable contracts could theoretically introduce vulnerabilities.
  • Mitigations:
    • Diamond Pattern (EIP-2535) for modular upgrades
    • 48-hour timelock delay
    • 3-of-5 multi-sig approval required
    • Full transparency in upgrade history

​
Dependency Risks

Vulnerabilities in integrated external protocols could affect us.

​
Oracle Risks

Price oracle manipulation could occur.
  • Mitigations:
    • Stablecoin focus minimizes oracle dependency
    • DEX spot prices instead of external oracles
    • TWAP protection where applicable
    • Slippage limits as final safeguard

​
Security Measures

​
Audit Status

  • Primary Audits: Core contracts and bridge integrations scheduled
  • Automated Scanning: Continuously active
  • Report Publication: Will be published when available

​
Security Patterns

  • Reentrancy Protection: Locks during execution
  • Access Control: Role-based
  • Pausability: For emergency response
  • Implementation Standard: OpenZeppelin’s well-established implementations

​
Emergency Controls

​
Contract Architecture

TED Protocol uses the Diamond Pattern (EIP-2535).

​
Structure

  • DiamondProxy: Single entry point
  • FXSwapFacet: Swap logic
  • DEX Adapters: Curve, Uniswap V3/V4, PancakeSwap, DragonSwap
  • Bridge Facets: CCTP, LayerZero, Wormhole
  • AdminFacet: Governance

​
Benefits

  • Single entry point reduces attack surface
  • Modular upgrades (changing one facet doesn’t affect others)
  • Improved gas efficiency
  • No contract size limits

​
Storage Safety

All facets share diamond storage using unique storage positions, preventing storage collision issues that have affected other upgradeable contracts.

​
Testing

​
Bug Bounty

In Scope:
  • Smart contracts on all supported chains
  • Bridge integrations
  • TEDP token contracts
Out of Scope: Frontend issues, third-party services Report: security@tedprotocol.io

​
User Protections

​
Transaction Safeguards

  • Slippage Limits: Revert if output falls below minimum
  • Deadlines: Revert transactions that are too old
  • Validation: Amount and address validation prevents common errors

​
If Something Goes Wrong