🎓Security Analysis & Insights

Motivation

Smart contract security has evolved significantly, yet many deployed contracts remain vulnerable. While automated tools cannot replace expert auditors, they provde an additional protection:

• Many projects deployed without any analysis

• Legacy contracts not evaluated with modern tools

• Historical vulnerabilities can be prevented by today's tooling

• Projects not keeping up with security tool advancements

The emergence of AI technology has transformed this landscape further. By combining traditional security approaches with AI:

• Better interpretation of analysis results

• Reduced false positives through context awareness

• Enhanced pattern recognition across codebases

• Automated verification of complex calculations

• Improved documentation analysis

This synergy creates an opportunity: as automated tools enhanced by AI handle common vulnerabilities, auditors can focus on complex attack vectors and novel exploitation methods. Modern security tools are becoming increasingly sophisticated, providing a strong first line of defense against well-known issues.

Security Pyramid

Security can be easily presented on a pyramid. Each pyramid layer builds upon the previous ones, with the foundation providing the greatest security impact for the lowest cost. As we move up the pyramid, the methods become more specialized and resource-intensive, while potentially finding fewer but more complex issues.

Level	Practice	Characteristics	Resource Cost
4️⃣ TOP	Manual Auditing	• Complex vulnerability detection • Context-aware assessment • Deep security expertise	Most Intensive 🔴
3️⃣	Dynamic Testing	• Fuzzing • Integration tests • Property verification	High Investment 🟠
2️⃣	Static Analysis	• Fast & automated • Cost-effective • Early detection	Good ROI 🟢
1️⃣ BASE	Good Practices	• Peer reviews • Unit testing (95%+) • Documentation • Version control	Best Impact/Cost 🔵

Automated Detection

Static analysis tools serve as the first line of defense after good practices:

• Quick identification of common vulnerabilities

• Cost-effective compared to manual review

• Supports, but does not replace, human expertise

Wake Framework Findings

The Wake Framework's core capabilities have already proven effective, discovering these vulnerabilities:

Vulnerability	Severity	Project	Method
Profit & loss accounted twice	Critical	IPOR	Fuzz test
Loan refinancing reentrancy	Critical	PWN	Detector
Incorrect optimization in loan refinancing	Critical	PWN	Fuzz test
Console permanent denial of service	High	Brahma	Fuzz test
Swap unwinding formula error	High	IPOR	Fuzz test
Swap unwinding fee accounted twice	High	IPOR	Fuzz test
Incorrect event data	High	Solady	Integration test

These findings demonstrate Wakehacker's effectiveness in detecting critical and high-severity issues across major DeFi protocols through various testing methods. Each vulnerability was discovered during actual security audits and has been properly documented and fixed.

[Source: Wake Framework GitHub]