MuesliSwap v2 smart contract successfully passed an audit by MLabs

We’re thrilled to announce that the MuesliSwap v2 protocol has successfully passed the external security audit conducted by MLabs and is now set to empower partial order matching.

MuesliSwap v2 is the second iteration of the smart contracts powering the MuesliSwap platform. This new version will enable a variety of advanced features to be included in the MuesliSwap DEX. Arguably the most important of these is partial matching, which will remove the requirement of exactly matching buy and sell orders in order to perform a trade. MuesliSwap v2 is an essential step towards a fully featured order book DEX on Cardano mainnet.

At MuesliSwap, we take the security of our platform very seriously. Hence, the security audit is essential to ensure that user funds are safe and that MuesliSwap v2 meets the highest safety standard. The audit report by MLabs has been made public on GitHub so that users have the chance to see the issues which were identified (and subsequently fixed by the team). https://github.com/mlabs-haskell/muesliswap-audit/blob/master/MuesliSwap-audit-report.pdf

As a step towards community governance and decentralization, we feel it’s more than necessary to share the findings with the Cardano community. Not only will it help to make MuesliSwap more secure in the long run, but the findings might also help other Cardano projects identify some of the critical subtleties that are crucial in designing secure Plutus smart contracts. As an example, double satisfaction attacks are known as one of the common vulnerabilities of smart contracts in the EUTXO-model. We are thus proud to say that the MuesliSwap v2 contract is pioneering new measures for successfully protecting orders against double satisfaction.

We were particularly pleased by the rigor and professionalism in MLabs’ work. The audit is based on a precise definition of the conditions for our protocol to be secure which we have initially provided to MLabs and can be found in the first section of the audit. As an overall result of the audit, we’re happy to say that the v2 contracts have been found to satisfy these security properties.

With the successful completion of the audit, MuesliSwap can leap into a new era of Cardano DeFi. MuesliSwap v2 will come with a new set of features, making it possible to include a wide range of DeFi tools into the MuesliSwap DEX. The most anticipated among these features is the ability to perform partial matches. It is known in the Cardano community that the main technical limitation of MuesliSwap v1 was the requirement of equally sized buy and sell orders in order to execute a trade. Lifting this restriction with v2 will allow users to trade an arbitrary amount of tokens at any time. Additionally, the new technical solution will allow multiple orders to be matched within one transaction. This is projected to result in a significant speedup and a higher throughput of trades on the MuesliSwap platform.

Since the launch of MuesliSwap in Q4 2021, an entire ecosystem has evolved around the MuesliSwap protocol. Several community members have developed their own matchmaking algorithms for MuesliSwap, helping to improve the decentralization of the protocol. To ensure that this level of decentralization continues to exist with MuesliSwap v2 and that the user experience does not suffer, the rollout of the new protocol will need to be performed in multiple stages. These are:

1. Deployment of MuesliSwap v2 on Cardano testnet & providing documentation for existing MuesliSwap infrastructure providers (matchmakers, external APIs, etc.)
2. Deployment of MuesliSwap v2 in beta mode for selected trading pairs on mainnet
3. Transition to MuesliSwap v2 as the main protocol for all trading pairs

In each of these steps, we will be collecting feedback from the community in order to further improve the v2 trading experience. In general, we are planning to keep both protocols, v1.1 and v2, operational for the time being.

About MuesliSwap

MuesliSwap is a decentralized exchange on the Cardano mainnet, allowing users to trade Cardano native tokens. MuesliSwap was launched as the first DEX on Cardano in November 2021 with the first iteration of the MuesliSwap smart contracts. Since then, the MuesliSwap DEX has been continuously growing and has at the time of writing already processed a total trading volume of more than 100 million USD in more than half a million smart contract interactions with the MuesliSwap v1.1 protocol.

We hope you’re as excited about the news as we are! As always, the development team is working hard on various aspects of the MuesliSwap platform, while listening to feedback from the community.

Happy trading and stay tuned!

The MuesliSwap Team