C8: Liquidity pool

May 19, 2026 · View on GitHub

Control Objective

If a project manages a liquidity pool, it is necessary to follow the standard and create secure contracts based on it. Learn from past mistakes that have been identified and have solutions ready.

Ensure that a verified contract satisfies the following high-level requirements:

  • Contracts follow the best security practices for liquidity pools,
  • Rewards for users are distributed accordingly to promises,
  • Potential threats related to liquidity pools are taken into consideration.

Category “C8” lists requirements related to the liquidity pool smart contracts as project components.

Security Verification Requirements

#Description
C8.1Verify whether sending funds to the pool's address before its creation will not disturb its proper functioning.
C8.2Verify that if there are several pools, the poolId is present and validated correctly.
C8.3Verify that the tokens used by the pools are from the predefined accepted list of addresses determined by the DAO.
C8.4Verify that the user is informed and aware about the risks associated with the use of a pool that allows the use of any tokens.
C8.5Verify that there are sufficient checks to ensure liquidity availability.
C8.6Verify that the pool is protected against the first-depositor inflation attack on initial LP shares (e.g. burn minimum liquidity, virtual reserves, deployer seed).
C8.7Verify that swap and liquidity-modification functions accept a minAmountOut / minLiquidity and a deadline parameter, and revert when not met.
C8.8Verify that pool fees and dynamic-fee parameters have hard maximum bounds enforced in code, not only by governance discipline.
C8.9Verify that price-impacting state (reserves, oracle observations) cannot be manipulated and read in the same block by an attacker integrating against the pool.
C8.10Verify that single-sided withdrawals or imbalanced operations cannot push the pool into a state where the invariant (e.g. constant-product, StableSwap) is violated.

References

For more information, see also:

Smart contract audit

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