It has been reported that the project had first announced its plans to develop an interoperable protocol on Polkadot in the summer of this year.
However, for its transition to Polkadot, the project has been developing new products for its decentralized, cross-chain money market, such as interoperable stablecoins, a synthetic asset platform, and a decentralized exchange.
Equilibrium has emphasized that Quantstamp’s security audit will be much further-reaching than typical audits, which focus on detecting bugs in smart contracts only. This is because Polkadot provides projects like Equilibrium with a modular framework called Polkadot Substrate, which they can use to launch stand-alone, customized blockchains that will later be connected to Polkadot as a Parachain.
Rather than auditing smart contracts that run in an isolated environment, Quantstamp will need to audit all of Equilibrium’s core components.
.@Quantstamp, a leading international #auditor, will audit Equilibrium as 1st @Polkadot project. This step is of key importance to ensure Equilibrium’s security and truthfulness. Learn more https://t.co/AjvBU8cS9u — Equilibrium (@EquilibriumDeFi) October 23, 2020
Equilibrium explained that the scope of Quantstamp’s audit will span the code that governs the blockchain’s underlying “business-logic on balances, its risk and price modules, and its ‘bailout’ mechanics.”
We will audit @EquilibriumDeFi's core components. Core components allow developers to easily integrate secure DeFi building blocks into their applications 👨💻 https://t.co/AWOpXSBFWD — Quantstamp (@Quantstamp) October 23, 2020
As per the report, the project’s developers have identified several key customized components and innovations that they believe require particular diligence, for example, the use of electronic signatures for off-chain brokers and claims.
Thus, Equilibrium concluded:
“Quantstamp’s audit is of key importance to ensure the quality of Equilibrium’s performance. The main reason is that you are customizing a blockchain runtime when you are building on Substrate. If a bug affects part of the logic on the Substrate, the blockchain as a whole can come to a standstill.”