OrderBook

Description:
The OrderBook contract currently employs a single owner model, where a single externally owned account (EOA) is granted exclusive control over all privileged administrative functions. This design pattern is common for simplicity but introduces significant centralization risks. The owner is able to execute critical operations such as setting allowed sell tokens, performing emergency withdrawals, and withdrawing accumulated protocol fees. If the owner’s private key is compromised, lost, or if the owner acts maliciously, the protocol’s security, user funds, and overall trustlessness can be severely undermined. Furthermore, this model may not align with the expectations of a decentralized protocol, as users and integrators may be wary of excessive centralized control.

Impact:
The concentration of authority in a single address means that a single point of failure exists for the protocol’s most sensitive operations. If the owner’s key is compromised, an attacker could disrupt the system. Even in the absence of malicious intent, mistakes or loss of access by the owner could result in the protocol becoming unmanageable. This centralization can also erode user confidence, as users may be reluctant to interact with a protocol that can be unilaterally altered or shut down by one party.

Recommended Mitigation:
To address these risks, it is strongly recommended to replace the single owner model with a multi-signature (multi-sig) wallet for all administrative and privileged actions. A multi-sig wallet requires a predefined number of trusted parties (signers) to approve any sensitive transaction, such as changing protocol parameters or withdrawing funds. This approach distributes control and greatly reduces the risk of unilateral or malicious actions, as no single party can act alone. Multi-sig solutions, such as Gnosis Safe, are widely used in the industry and provide robust security guarantees. Additionally, using a multi-sig can improve transparency and accountability, as all administrative actions require consensus among multiple stakeholders. For further reading and best practices on implementing multi-sig administration, please refer to the following article:

• https://blog.openzeppelin.com/admin-accounts-and-multisigs