Metric Categories
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In order to develop an all rounder auditor, we will be analyzing the following facets of a token / project:
Smart contract: Our auditor performs a thorough analysis of all functions within the smart contract to evaluate their implications and the potential harm they could pose to end users. We meticulously examine the general flow of the contract, ensuring that every operation aligns with best practices for security and efficiency. This detailed scrutiny helps identify vulnerabilities and safeguard investors against potential exploits and risks associated with faulty or malicious contract logic
Liquidity: We assess the liquidity of a token by examining three key aspects: initial liquidity, current liquidity, and the extent of liquidity that is locked. This comprehensive evaluation helps us understand the token's market stability and the ease with which it can be bought and sold. Locked liquidity is particularly scrutinized to gauge the long-term commitment of the project's founders, reducing the risk of rug pulls and ensuring a healthier, more trustworthy investment environment
Transactions: Our transaction analysis delves into the patterns of token dispersion among holders, identifying potential red flags such as interlinked contracts where a single user might spread tokens across multiple wallets to create a false impression of widespread token distribution. Additionally, we closely monitor the token distribution to detect any large holders / entities holding a large portion of the circulating supply, which could indicate potential market manipulation risks or points of failure
Governance: This aspect of our audit focuses on analyzing the developers' experience and their capacity to deploy and maintain robust smart contracts. We evaluate the team's track record, their technical expertise, and the overall community engagement to assess the projectβs credibility and sustainability. Understanding the team's background and the community's support is vital in predicting the long-term success and reliability of the token
Each category has a variable number of metrics, but most importantly, some metrics are binary and others are time series / continuous.
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