Partnership Overview
Client
AI Seer (Facticity)
Platform
Base (EVM)
Service
Smart Contract Security Audit
Scope
Staking, Vaults & Payment Contracts
About AI Seer
AI Seer is building infrastructure at the intersection of blockchain and artificial intelligence, focusing on trusted security and compliance solutions. Their platform includes a staking system that enables users to participate in the protocol's ecosystem through token staking with configurable reward periods, claim vaults for token distribution, and subscription-based payment processing for premium services.
Security Requirements
As AI Seer prepared to launch their staking infrastructure on Base, ensuring the security of user funds and reward distribution mechanisms was critical. The team engaged FailSafe to conduct a comprehensive security audit focused on their core staking contract, along with review of supporting vault and payment infrastructure.
The audit scope encompassed critical security considerations including reward pool management, staking period mechanics, privilege controls, token accounting, and protection against common DeFi vulnerabilities such as reentrancy, precision loss, and accounting mismatches.
Audit Methodology
FailSafe's security team conducted a multi-layered audit approach combining extensive manual code review with automated analysis and threat modeling to ensure thorough coverage of potential attack vectors:
Threat Modeling
Identified critical assets including staking pools, reward tokens, access controls, and enumerated potential threats specific to staking protocols and time-based reward distribution systems.
Manual Code Review
Line-by-line examination of the 1,358-line Staking.sol contract, analyzing reward distribution logic, period management, and privileged operations for vulnerabilities and compliance with best practices.
Access Control Analysis
Comprehensive review of admin roles and privileged functions to ensure appropriate safeguards against both internal and external threats to user funds.
Mathematical Verification
Validated reward calculation formulas, APY computations, and precision handling to ensure accurate reward distribution without rounding errors or over-allocation issues.
Confidential Partnership
In accordance with AI Seer's security and business requirements, the detailed findings and specific vulnerabilities identified during this audit remain confidential. Our partnership focused on addressing security considerations across multiple severity levels, with the development team implementing fixes and documented acknowledgments for all identified issues.
The audit identified findings across the staking contract's reward management, token handling, and administrative functions. All findings have been successfully resolved, with the team implementing timelock governance and improved accounting mechanisms based on our recommendations.
Partnership Impact
Through close collaboration with AI Seer's development team, FailSafe provided comprehensive security guidance that strengthened the protocol's security posture. The engagement covered:
- Security architecture review for staking, vault, and payment contract design patterns
- Implementation of timelock governance for privileged operations to provide transparency and user protection
- Improved reward calculation mechanics using multiply-then-divide patterns for precision retention
- Global claims tracking to ensure fair reward distribution regardless of claim timing
Interested in Learning More?
If you're building AI-integrated blockchain systems, staking protocols, or agentic infrastructure and need comprehensive smart contract security services, our team can share more about our approach and how we've helped projects like AI Seer secure their platforms.
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