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Is Degen Safe?

On-chain security analysis — is it a scam or legit?

Degen DEGEN
0x4ed4…efed
Base Not verifiedLast checked 3d ago 1 audit on record
DexScreener ↗
How is this score calculated? → High Risk
Executive SummaryAI Copilot

The DegenToken contract is an ERC20 token with burnable, pausable, permit, and voting functionalities, built upon battle-tested OpenZeppelin libraries. The contract includes a custom minting mechanism allowing the owner to mint up to 1% of the total supply annually, and the ability to pause all token transfers. While the implementation is generally robust, these centralized owner controls introduce significant economic and operational risks. The owner is a 2/3 multisig, which partially mitigates single-point-of-failure risks.

1 High1 Medium1 Low1 Informational
Volume 24h
$67.2K
Liquidity
$999.0K
Price
$0.001061
Token Age
2y
Top 10 Holders
61.5%

Security Findings

1 High1 Med1 Low1 Info
High

Centralized Control Over Token Supply (Minting)

H-01The `mint` function, callable only by the contract owner, allows the creation of new tokens up to 1% of the current total supply annually. This centralized control over token supply can lead to inflation and dilution of existing token holders if misused or if the owner's keys are compromised. While the owner is a multisig, the power itself is significant.
IssueThe `mint` function, callable only by the contract owner, allows the creation of new tokens up to 1% of the current total supply annually. This centralized control over token supply can lead to inflation and dilution of existing token holders if misused or if the owner's keys are compromised. While the owner is a multisig, the power itself is significant.
FixImplement a timelock for the `mint` function to introduce a delay between the owner initiating a minting operation and its execution. This provides a window for community review and reaction. Consider a more decentralized approach to minting, such as a community-governed mechanism or a fixed, transparent emission schedule.
StatusUnresolved
Medium

Centralized Control Over Token Transfers (Pausable)

M-01The contract owner has the ability to pause and unpause all token transfers via the `pause()` and `unpause()` functions. While this can be a useful emergency mechanism to mitigate active exploits, it also grants the owner the power to unilaterally halt all token activity, potentially disrupting liquidity, exchanges, and user operations. This introduces a single point of control for critical token functionality.
IssueThe contract owner has the ability to pause and unpause all token transfers via the `pause()` and `unpause()` functions. While this can be a useful emergency mechanism to mitigate active exploits, it also grants the owner the power to unilaterally halt all token activity, potentially disrupting liquidity, exchanges, and user operations. This introduces a single point of control for critical token functionality.
FixEnsure robust operational procedures are in place for the multisig controlling the `pause` function. Consider implementing a timelock for the `unpause` function to prevent immediate re-enabling of transfers after a pause, allowing for a more controlled recovery. Clearly communicate the conditions under which pausing may occur to the community.
StatusUnresolved
Low

Fixed Minting Cap Parameter

L-01The `MINT_CAP` is a constant value of `1`, which translates to a 1% annual minting cap relative to the total supply. This parameter is hardcoded and cannot be adjusted after deployment. While a fixed cap provides predictability, it lacks flexibility. Future economic requirements or protocol changes might necessitate a different minting rate, which would require a new contract deployment and token migration.
IssueThe `MINT_CAP` is a constant value of `1`, which translates to a 1% annual minting cap relative to the total supply. This parameter is hardcoded and cannot be adjusted after deployment. While a fixed cap provides predictability, it lacks flexibility. Future economic requirements or protocol changes might necessitate a different minting rate, which would require a new contract deployment and token migration.
FixConsider making the `MINT_CAP` a configurable parameter, adjustable by the owner (preferably with a timelock and/or governance vote). This would allow the protocol to adapt to changing economic conditions without requiring a full redeployment.
StatusUnresolved
Info

Lack of Upgradeability

I-01The DegenToken contract is deployed as a standard, non-upgradeable implementation. This means that its logic is immutable once deployed to the blockchain. Any future bug fixes, security patches, or feature enhancements would require deploying an entirely new contract and migrating all token holders and integrated protocols to the new address, which is a complex and costly process.
IssueThe DegenToken contract is deployed as a standard, non-upgradeable implementation. This means that its logic is immutable once deployed to the blockchain. Any future bug fixes, security patches, or feature enhancements would require deploying an entirely new contract and migrating all token holders and integrated protocols to the new address, which is a complex and costly process.
FixFor future contracts, consider implementing an upgradeable proxy pattern (e.g., UUPS or Transparent Proxy) to allow for secure and controlled upgrades. This provides flexibility for long-term maintenance and evolution of the protocol without requiring token migrations.
StatusUnresolved

Category Ratings

TechnicalLow7/10

The DegenToken contract leverages well-audited OpenZeppelin libraries for its core ERC20 functionalities, including burnable, pausable, permit, and voting extensions (7.2 Code Security). The custom minting logic correctly implements time-based restrictions and a supply cap, preventing immediate re-minting and excessive inflation per transaction. However, the reliance on `onlyOwner` for critical functions like minting and pausing introduces a centralized technical control point (7.3 Access Control).

GovernanceMedium4/10

The economic model grants the owner significant control over token supply through an annual minting function, capped at 1% of the total supply (7.4 Economic). This introduces a continuous inflationary mechanism. Additionally, the owner can pause all token transfers, which can severely impact liquidity and user operations (7.4 Economic). While the owner is a 2/3 multisig, which improves security over a single EOA, these powers remain centralized and could be misused or compromised (7.5 Governance).

UpgradesMedium4/10

The DegenToken contract is implemented as a standard, non-upgradeable contract (7.7 Upgrades). This means that once deployed, its logic cannot be modified. Any future bug fixes, feature enhancements, or changes to the economic model would necessitate a new contract deployment and a token migration process, which can be complex and costly for the community.

Security Checklist

2/5 checks passed
Contract VerifiedPass
Ownership RenouncedFail
No Mint FunctionFail
Liquidity LockedFail
Not a ProxyPass

Holder Composition

61.5% in top 10
22.0% in wallets39.6% in contracts
Effective Concentration37.8%

Share held by contracts — treasury, vesting, bridge or staking — is discounted against share held by wallets when the score is computed: a contract cannot decide to sell the way an anonymous holder can, though it can still be drained or voted to sell. Effective concentration is the figure the risk score is actually calculated from.

Liquidity Depth

$1.19M across 30 pairs
Uniswap v3WETHanalysed$999.0K84.0%Uniswap v3WETH$115.7K9.7%AerodromeWETH$34.4K2.9%AerodromeWETH$16.6K1.4%Uniswap v4ETH$6.2K0.5%AerodromeTKN$5.2K0.4%
Show 4 more pairsShow less
AerodromeUSDC$2.4K0.2%PancakeswapWETH$2.2K0.2%Uniswap v4USDC$1.9K0.2%0xba34…EEF9WETH$1.3K0.1%

The 20 remaining pairs hold $3.7K between them and are not listed.

The risk score reads depth across every pair. The volume figure and the volume-to-liquidity ratio elsewhere on this page describe only the pair this audit analysed, so the two are not directly comparable.

LP Distribution

Top-1 Unlocked Holder50.0%
Top-3 Unlocked99.9%

Key Addresses

11 addresses
Deployer
0x3c12…41d2
Unlocked LP Held By
0x66bd…55e50x2448…1e9b0x1cbb…b1a40xed79…66360x94cf…54e60x2423…9d1a0x99d1…e2820x33b5…7a280x1df2…65780x0000…afca

No privileged address appears among these holders: the unlocked liquidity sits with independent providers, not with the deployer.

What Raised This Score

8 factors
  • Ownership NOT renounced — Multisig (2-of-3)
  • Mintable supply — no cap found, dilution unbounded
  • Top-10 concentration > 30% (61.5% total → 37.8% effective; 22.0% in EOAs, 39.6% in contracts — moderate)
  • Liquidity not locked, but no owner/deployer address holds LP — market-depth risk, not rug risk
  • LP top3 unlocked holders = 99.9% (independent LP — depth risk, pool = 84% of DEX liquidity)
  • 1 High finding(s) from audit
  • 1 Medium finding(s) from audit
  • 1 Low finding(s) from audit

Each factor is an on-chain fact recorded at the time of this analysis. The score is computed from them by a deterministic function, so the same contract returns the same score for anyone who runs the audit. How scores are computed

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