Pareto USP, a credit-backed synthetic dollar
USP is a synthetic dollar that is backed primarily by Pareto Credit Vaults (formerly Idle Vaults). Pareto Credit Vaults are a collection of institutional-grade lending strategies that generate yield on the underlying assets via proprietary strategies of institutional borrowers
Details
Scope
On what chains are the smart contracts going to be deployed?
Ethereum
If you are integrating tokens, are you allowing only whitelisted tokens to work with the codebase or any complying with the standard? Are they assumed to have certain properties, e.g. be non-reentrant? Are there any types of weird tokens you want to integrate?
No wierd tokens. Collaterals tokens will only be "big" ERC20 stablecoins, USDC, USDT, USDS, DAI, potentially USDe
Are there any limitations on values set by admins (or other roles) in the codebase, including restrictions on array lengths?
Owner/Pauser is trusted.
Manager role for the queue contract is trusted too but in general he should not be able to run with the money as functions that he can call and parameters are restricted
Are there any limitations on values set by admins (or other roles) in protocols you integrate with, including restrictions on array lengths?
No
Is the codebase expected to comply with any specific EIPs?
ParetoDollarStaking.sol should ERC4626 compliant so that it can be easily integrated in other Defi protocols
Are there any off-chain mechanisms involved in the protocol (e.g., keeper bots, arbitrage bots, etc.)? We assume these mechanisms will not misbehave, delay, or go offline unless otherwise specified.
No
What properties/invariants do you want to hold even if breaking them has a low/unknown impact?
No
Please discuss any design choices you made.
Nothing special I would, some 'issues' have been marked as acknowledged in prev audits that we did so this issues should not be reported as long as there are no new findings around those
Please provide links to previous audits (if any).
Please list any relevant protocol resources.
Further documentation can be found at: https://github.com/sherlock-audit/2025-04-pareto-contest/blob/main/USP/_attachements/doc.md
Additional audit information.
Main area of focus should be eventual loss of funds for the users, locked/unrecoverable funds, serious misbehaviour of the protocol.
Additional information for Pareto Credit vaults used as yield sources for USP can be found here https://docs.pareto.credit/product/credit-vaults
Total Rewards
Contest Pool
Lead Senior Watson
Judging Pool
Lead Judge
13,000 USDC
4,500 USDC
800 USDC
1,200 USDC
Status
Scope
Start Time
End Time
Judging Rules
This contest has finished