Summary
Full security audit of the Borderless Native Assurance Protocol (NAP), a DeFi system combining NFT functionality with decentralized assurance mechanisms.
Audited Functionality
The Native Assurance Protocol (NAP) is a solution designed to enhance NFT valuation using liquidity backing, in other words a liquidity framework.
At its core, NAP allows users to exchange ERC721 and ERC1155 tokens for the backed ERC20 class token, and vice versa. This is realized by integrating with Uniswap V2 for liquidity management and leveraging ERC20 tokens for assurance and collateral.
The NAP system core contracts are:
NAP721andNAP1155: provide lifecycle management for NFT via activations and deactivations- on activation the user deposits LP tokens corresponding to the assurance-collateral pair and receives the backed NFT, of type in accordance with the interacted NAP contract
- on deactivation, user exchanges his NFT for LP tokens
Factory: sets up and deploys the NAP contractsDistributor: distributes funds and fees through the NAP system- several other peripheral contracts that help maintain the overall balance of the system.
The project will be first deployed on the Polygon PoS blockchain.
More on the protocol can be found on the official documentation page.
Findings Breakdown
About Borderless
borderless.artb0rder1ess is a community-driven Web3 ecosystem focused on enhancing the stability and functionality of NFTs. The platform operates through two main divisions: b0rder1ess.studio, which creates curated NFT collections, and b0rder1ess.lab, which develops technological solutions. Their flagship technology is the Native Assurance Protocol (NAP), the first protocol to guarantee NFT liquidity and instant sell-back, enabling users to exchange their NFTs for stablecoins or other tokens at any time. Additional products include the Avatar Standalone Identity (ASI) dApp and Self-Organizing Communities (SOC) dApp. The ecosystem is powered by the B01 utility token and is built on Polygon, with partners including Polygon Labs, Trust Wallet, and the A.D.E.D. street art collective.
