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Security Audit & Protocol Verification

This report summarizes the comprehensive security audit performed on the VelumX Protocol infrastructure, encompassing the Relayer Network, SDK architecture, and Clarity smart contracts.

1. Audit Methodology

The assessment employed a multi-layered security verification process:
  • Static Analysis: Automated and manual review of the TypeScript and Clarity codebases.
  • Dynamic Analysis: Testing typical attack vectors (SQLi, XSS, Reentrancy) in a simulated testnet environment.
  • Economic Stress Testing: Verifying the integrity of the fee engine and relayer solvency under extreme oracle volatility.

2. High-Level Risk Assessment

ComponentSecurity StatusPrimary Controls
Relayer Auth🟢 VerifiedSupabase JWT with asymmetric JWKS rotation.
Data Persistence🟢 VerifiedPrisma ORM with strict parameterized querying.
Smart Contracts🟢 VerifiedStacks-native sponsorship with atomic fee settlement.
SDK Credentials🟢 VerifiedRequired Server-Side Proxy enforcement.

3. Findings & Remediations

[VX-2026-001] Production CORS Configuration

Severity: Medium
Component: Relayer API Gateway
Description: The initial development configuration allowed for dynamic origin resolution which could lead to unauthorized cross-origin requests in production.
Remediation: Reconfigured the middleware to enforce a strict whitelist of verified Dashboard and dApp domains.

[VX-2026-002] Client-Side Credential exposure

Severity: High (Mitigated)
Component: SDK Initialization
Description: Early versions of the SDK allowed for API Key storage in the browser environment.
Remediation: Implemented the Secure Proxy Pattern. The SDK now prohibits the inclusion of secret keys in client bundles, requiring a server-side handshake.

4. Operational Security Assumptions

The security of the VelumX protocol relies on the following operational assumptions:
  1. Developer Integrity: Developers must implement the Secure Proxy correctly to prevent key leakage.
  2. Oracle Reliability: The multi-oracle price engine assumes that at least one primary source (CoinGecko/Binance) remains uncompromised.
  3. Master Key Protection: The VelumX Master Key (for relayer derivation) is managed via encrypted environment injection and is never stored in source control.

5. Formal Verification & Compliance

[!IMPORTANT] Audit Status: Internal verification is complete. External Third-Party Audits of the v5 Registry Architecture are scheduled for Q3 2026.
Developers wishing to review the full security specifications should consult the Technical Architecture and Throttling Quotas modules.