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Is LayerZero Safe?

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

LayerZero ZRO
0x6985…71cd
Base Not verifiedLast checked 3d ago 2 audits on record
DexScreener ↗
How is this score calculated? → High Risk
Executive SummaryAI Copilot

The LayerZeroToken contract is a standard implementation of LayerZero's Omnichain Fungible Token (OFT) using OpenZeppelin's Ownable. It primarily relies on well-audited external libraries for its core functionality. The contract itself is minimal, reducing the surface area for custom code vulnerabilities. However, the critical role of the owner/delegate in configuring cross-chain parameters and the inherent dependency on the LayerZero protocol introduce significant operational and economic risks.

1 Critical2 Medium1 Low1 Informational
Volume 24h
$533.8K
Liquidity
$69.6K
Price
$1.1500
Token Age
1y
Top 10 Holders
59.7%

Security Findings

1 Crit2 Med1 Low1 Info
Critical

Critical Owner Privileges

C-01The owner address (initialized as `_delegate` in the constructor) possesses critical administrative privileges over the LayerZeroToken contract's cross-chain functionality. Specifically, the owner can call `setPeer` to configure trusted OApp instances on other chains and `setDelegate` to change the delegate address on the LayerZero endpoint. A compromise of this owner address would grant an attacker full control over the contract's cross-chain configuration, potentially leading to unauthorized token transfers or denial of service for cross-chain operations (7.3 Access Control, 7.8 Operations).
IssueThe owner address (initialized as `_delegate` in the constructor) possesses critical administrative privileges over the LayerZeroToken contract's cross-chain functionality. Specifically, the owner can call `setPeer` to configure trusted OApp instances on other chains and `setDelegate` to change the delegate address on the LayerZero endpoint. A compromise of this owner address would grant an attacker full control over the contract's cross-chain configuration, potentially leading to unauthorized token transfers or denial of service for cross-chain operations (7.3 Access Control, 7.8 Operations).
FixImplement a robust multi-signature wallet with a high threshold for the owner address. Consider integrating a time-lock mechanism for critical administrative functions like `setPeer` and `setDelegate` to introduce a delay before changes take effect, allowing for detection and potential intervention in case of a malicious or erroneous action. Ensure the private keys for the multi-signature signers are stored securely and follow best practices for key management.
StatusUnresolved
Medium

Renounce Ownership Risk

M-01The contract inherits `renounceOwnership()` from OpenZeppelin's `Ownable` contract. If the owner accidentally or maliciously calls this function, the contract would become unowned and unmanageable. This would prevent any future updates to critical LayerZero configurations, such as `setPeer` or `setDelegate`, effectively bricking the cross-chain functionality of the token (7.3 Access Control, 7.8 Operations).
IssueThe contract inherits `renounceOwnership()` from OpenZeppelin's `Ownable` contract. If the owner accidentally or maliciously calls this function, the contract would become unowned and unmanageable. This would prevent any future updates to critical LayerZero configurations, such as `setPeer` or `setDelegate`, effectively bricking the cross-chain functionality of the token (7.3 Access Control, 7.8 Operations).
FixConsider overriding `renounceOwnership()` to revert, or remove it entirely if it's not intended to be used. If renouncing ownership is a desired feature, ensure there is a clear, documented process and strong safeguards to prevent accidental invocation. For critical infrastructure, renouncing ownership is generally not recommended.
StatusUnresolved
Medium

Dependency on LayerZero Endpoint Security

M-02The LayerZeroToken contract's core cross-chain functionality is entirely dependent on the security and correct operation of the external LayerZero endpoint contract. Any vulnerability, misconfiguration, or compromise within the LayerZero endpoint itself could directly impact the security and functionality of this token, potentially leading to loss of funds or disruption of cross-chain transfers (7.6 External, 7.4 Economic).
IssueThe LayerZeroToken contract's core cross-chain functionality is entirely dependent on the security and correct operation of the external LayerZero endpoint contract. Any vulnerability, misconfiguration, or compromise within the LayerZero endpoint itself could directly impact the security and functionality of this token, potentially leading to loss of funds or disruption of cross-chain transfers (7.6 External, 7.4 Economic).
FixWhile direct mitigation within this contract is limited, it is crucial to stay informed about the security posture and audits of the LayerZero protocol. Monitor LayerZero announcements and security advisories closely. Implement off-chain monitoring for LayerZero endpoint activity relevant to this token. Diversify cross-chain solutions if possible, or have contingency plans in place for potential LayerZero endpoint issues.
StatusUnresolved
Low

Immutable LayerZero Endpoint Address

L-01The `lzEndpoint` address is set as an immutable variable in the constructor of `OAppCore` (a base contract for LayerZeroToken). While immutability prevents malicious changes post-deployment, it also means that if the LayerZero endpoint address ever needs to change (e.g., due to a major upgrade, deprecation, or critical bug in the endpoint itself), the `LayerZeroToken` contract would need to be redeployed, and all token holders would need to migrate their tokens (7.1 Architecture, 7.8 Operations).
IssueThe `lzEndpoint` address is set as an immutable variable in the constructor of `OAppCore` (a base contract for LayerZeroToken). While immutability prevents malicious changes post-deployment, it also means that if the LayerZero endpoint address ever needs to change (e.g., due to a major upgrade, deprecation, or critical bug in the endpoint itself), the `LayerZeroToken` contract would need to be redeployed, and all token holders would need to migrate their tokens (7.1 Architecture, 7.8 Operations).
FixAcknowledge this design choice. If future flexibility is desired, consider a design pattern where the endpoint address can be updated by the owner, possibly with a time-lock. However, this introduces additional complexity and potential attack surface. For many applications, an immutable endpoint is acceptable given the stability of LayerZero's infrastructure.
StatusUnresolved
Info

Combined Owner and Delegate Role

I-01In the constructor, the `_delegate` address is used to initialize both the `Ownable` contract (making it the contract owner) and the LayerZero endpoint delegate via `endpoint.setDelegate(_delegate)`. This design centralizes significant control in a single address, simplifying management but also consolidating risk (7.3 Access Control, 7.8 Operations).
IssueIn the constructor, the `_delegate` address is used to initialize both the `Ownable` contract (making it the contract owner) and the LayerZero endpoint delegate via `endpoint.setDelegate(_delegate)`. This design centralizes significant control in a single address, simplifying management but also consolidating risk (7.3 Access Control, 7.8 Operations).
FixEnsure that the implications of this combined role are fully understood by the operational team. While it simplifies setup, it means that the security of this single address is paramount for both contract ownership and LayerZero endpoint delegation. Document the responsibilities and security procedures for this address clearly.
StatusUnresolved

Category Ratings

TechnicalLow8/10

The contract exhibits good technical quality, primarily due to its reliance on battle-tested OpenZeppelin and LayerZero OApp-v2 libraries. The custom logic in LayerZeroToken.sol is minimal, serving as a simple wrapper around the OFT implementation. This approach reduces the likelihood of common coding vulnerabilities such as reentrancy or integer overflows (7.2 Code Security). The architecture (7.1 Architecture) is straightforward, inheriting directly from OFT, which simplifies understanding and auditing. No significant technical flaws were identified in the contract's direct implementation.

GovernanceHigh2/10

The contract's economic and governance model (7.4 Economic, 7.5 Governance) is centralized, with a single owner/delegate address holding critical configuration privileges. This owner can set trusted peers for cross-chain communication via `setPeer` and change the delegate on the LayerZero endpoint via `setDelegate`. A compromise of this owner address could lead to unauthorized cross-chain token transfers or disruption of service. Additionally, the contract's functionality is entirely dependent on the security and operational integrity of the external LayerZero endpoint (7.6 External), introducing a significant external dependency risk.

UpgradesMedium6/10

The LayerZeroToken contract is not designed to be upgradeable (7.7 Upgrades). It is a standard implementation contract without any proxy patterns. This eliminates upgrade-related risks such as proxy storage collisions or incorrect upgrade logic. However, it also means that any future changes or bug fixes to the core contract logic would require a redeployment and migration of assets.

Security Checklist

3/5 checks passed
Contract VerifiedPass
Ownership RenouncedFail
No Mint FunctionPass
Liquidity LockedFail
Not a ProxyPass

Holder Composition

59.7% in top 10
59.7% in wallets0.0% in contracts
Effective Concentration59.7%

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

$232.1K across 17 pairs
AerodromeWETHanalysed$69.6K30.0%AerodromeWETH$35.4K15.2%AerodromeZEN$27.8K12.0%Uniswap v4USDC$23.8K10.2%Uniswap v3WETH$21.0K9.1%Uniswap v3USDC$17.3K7.4%
Show 4 more pairsShow less
Uniswap v3WETH$9.5K4.1%Uniswap v4USDC$9.0K3.9%SushiswapWETH$6.1K2.6%PancakeswapWETH$4.6K2.0%

The 7 remaining pairs hold $8.1K 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 Holder100.0%
Top-3 Unlocked100.0%

Key Addresses

2 addresses
Deployer
0xb505…e155
Unlocked LP Held By
0x9b81…7db9

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 — strong Multisig (3-of-5)
  • Top-10 concentration > 50% (59.7% total → 59.7% effective; 59.7% in EOAs, 0.0% in contracts — heavy)
  • Liquidity not locked, but no owner/deployer address holds LP — market-depth risk, not rug risk
  • LP top1 unlocked holder = 100.0% (independent LP — depth risk, pool = 30% of DEX liquidity)
  • LP top3 unlocked holders = 100.0% (independent LP — depth risk, pool = 30% of DEX liquidity)
  • 1 Critical finding(s) from audit
  • 2 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

Frequently Asked Questions

Is LayerZero a scam?

Based on automated analysis, LayerZero scores 68/100 (High Risk) on our risk scale. No honeypot was detected, but always verify independently before investing.

Is LayerZero safe to buy?

Our scanner flagged a risk score of 68/100. Ownership has not been renounced, which is a risk factor. DYOR before purchasing any token.

Has LayerZero been audited?

The contract has not been verified on-chain. Verification is not the same as a full security audit. Use Quantum Audit's free tool to run a deeper analysis of the contract code.

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