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Is SKALE Safe?

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SKALE SKL
0x00c8…a7a7
Ethereum
Not verifiedThis record has not gone through deep verification and is not being monitored. The score is a dated snapshot — the token’s risk can change at any time.Own this token? Put it under verification →
Last checked today 1 audit on record
DexScreener ↗
How is this score calculated? → Medium Risk
Executive SummaryAI Copilot

The SkaleToken contract implements an ERC777 token with robust access control and upgradeability features. The audit identified two medium-severity issues stemming from centralized control: a privileged role can mint new tokens, potentially diluting existing holders, and the same role can control a switch that affects token transfers, impacting liquidity and user autonomy. These findings highlight significant centralized power over the token's supply and transferability.

4 Medium3 Informational
Volume 24h
$339.0K
Liquidity
$81.5K
Price
$0.004882
Token Age
5y
Top 10 Holders
42.3%

Security Findings

4 Med3 Info
Medium

Centralized Control Over Token Supply

CP-01A specific role has the ability to call the `mint` function, which creates new SkaleTokens and adds them to the total supply. This means that the controller of this role can increase the total number of tokens at any time, potentially diluting the value of existing tokens held by others.
IssueA specific role has the ability to call the `mint` function, which creates new SkaleTokens and adds them to the total supply. This means that the controller of this role can increase the total number of tokens at any time, potentially diluting the value of existing tokens held by others.
FixConsider implementing a decentralized governance mechanism or a time-lock for the `mint` function to provide transparency and allow token holders to react to or approve such significant changes to the token supply. Clearly document the conditions under which new tokens can be minted.
StatusUnresolved
Medium

Centralized Control Over Token Transfers

CP-05The `mint` function, controlled by a specific role, can also change an internal `_status` variable. This `_status` variable is checked in the token's transfer path, meaning the controller of this role can effectively enable or disable token transfers or sales at will. This could halt trading and prevent users from moving their tokens.
IssueThe `mint` function, controlled by a specific role, can also change an internal `_status` variable. This `_status` variable is checked in the token's transfer path, meaning the controller of this role can effectively enable or disable token transfers or sales at will. This could halt trading and prevent users from moving their tokens.
FixEvaluate the necessity of this transfer control mechanism. If essential, implement a multi-signature wallet or a time-lock for changes to this setting. Ensure that any such control is transparently communicated to token holders, along with the conditions under which it might be activated.
StatusUnresolved
Medium

Liquidity not locked

QA-LIQUIDITY0.0% of the pool's LP is burned or time-locked. 100.0% is held, unlocked, by 5 address(es) other than the owner/deployer. One of them — a wallet, 0x858d…34c5 — holds 59.5% and can remove that share at once; who controls it is not visible on-chain, so it is not treated as an independent provider. Some pools are concentrated-liquidity (V3/V4) positions; shares above are by position as GoPlus reports them. This assessment covers the main pool, which holds 61% of the token's DEX liquidity; the other pools were not assessed.
Issue0.0% of the pool's LP is burned or time-locked. 100.0% is held, unlocked, by 5 address(es) other than the owner/deployer. One of them — a wallet, 0x858d…34c5 — holds 59.5% and can remove that share at once; who controls it is not visible on-chain, so it is not treated as an independent provider. Some pools are concentrated-liquidity (V3/V4) positions; shares above are by position as GoPlus reports them. This assessment covers the main pool, which holds 61% of the token's DEX liquidity; the other pools were not assessed.
FixCheck the lock's end date and beneficiary on the locker's own page before relying on it.
StatusAcknowledged
Medium

The market for this token

QA-MARKETLiquidity $133K (DexScreener, all pools). 24h trading volume $73.9M (CoinGecko, all markets, daily snapshot). 24h trading volume $345K (DexScreener, all pools). CoinGecko's record for this coin: all-time high $1.22 on 2021-03-11; the price is now 99.5874% below it.
IssueLiquidity $133K (DexScreener, all pools). 24h trading volume $73.9M (CoinGecko, all markets, daily snapshot). 24h trading volume $345K (DexScreener, all pools). CoinGecko's record for this coin: all-time high $1.22 on 2021-03-11; the price is now 99.5874% below it.
FixSize any position to the liquidity and daily volume shown — they set how much you can sell and at what price.
StatusAcknowledged
Info

Who holds the supply

QA-HOLDERSThe ten largest holders own 42.3% of supply. What remains: 36.2% in wallets, 6.1% in other contracts. 31,417 holders in total.
IssueThe ten largest holders own 42.3% of supply. What remains: 36.2% in wallets, 6.1% in other contracts. 31,417 holders in total.
FixWatch the largest wallets that are not exchanges, pools or locks — those are the ones that can move the price.
StatusAcknowledged
Info

Identity verified by independent sources

QA-IDENTITYListed on CoinGecko as SKALE (SKL), market cap $31M, rank #674. Traded on Binance, Coinbase. 31,417 holders. Verified by: CoinGecko, exchange listings.
IssueListed on CoinGecko as SKALE (SKL), market cap $31M, rank #674. Traded on Binance, Coinbase. 31,417 holders. Verified by: CoinGecko, exchange listings.
FixMatch the contract address against the project's official channels before trading.
StatusAcknowledged
Info

Asset class: Project token

QA-PROFILEA token issued by a project for use, governance or fundraising. Scored on its contract and market facts. The class itself adds no points; the contract and market facts decide the score. Basis: no class-specific evidence. Tokenomics — Supply: mintable with no on-chain cap found. Control: an owner that could not be resolved. Code: not upgradeable (no proxy). Fees: no buy or sell tax. Market: $133K of DEX liquidity across 4 pools. Launch: 2138 days of market history.
IssueA token issued by a project for use, governance or fundraising. Scored on its contract and market facts. The class itself adds no points; the contract and market facts decide the score. Basis: no class-specific evidence. Tokenomics — Supply: mintable with no on-chain cap found. Control: an owner that could not be resolved. Code: not upgradeable (no proxy). Fees: no buy or sell tax. Market: $133K of DEX liquidity across 4 pools. Launch: 2138 days of market history.
FixCheck the project's own documentation for what the token is used for; this report covers what the contract allows.
StatusAcknowledged

Category Ratings

TechnicalLow8/10

The SkaleToken contract is built on the ERC777 standard, incorporating `ReentrancyGuard` for common attack prevention and `AccessControlUpgradeSafe` for robust role-based permissions (7.2 Code Security, 7.3 Access Control). Its architecture (7.1 Architecture) includes `Initializable` for upgrade safety. However, technical risks arise from the centralized control over the `mint` function, which can both increase token supply and modify the `_status` variable, directly impacting token transfer rules.

GovernanceHigh1/10

The economic model of the SkaleToken is subject to significant centralized influence (7.4 Economic). A privileged role has the ability to mint new tokens, which can dilute the value for existing token holders without a clear decentralized governance process (7.5 Governance). Furthermore, the same role can control a switch that dictates whether token transfers are allowed, posing a risk to liquidity and user freedom to transact. These controls introduce potential for economic manipulation or disruption.

UpgradesHigh3/10

The contract is designed with upgradeability in mind, inheriting `Initializable` and `AccessControlUpgradeSafe` (7.7 Upgrades). This design allows for future enhancements, bug fixes, or parameter adjustments without requiring a complete redeployment, which is a significant advantage for long-term project sustainability. The implementation of these features follows established patterns for secure upgradeable contracts.

Security Checklist

2/5 checks passed
Contract VerifiedPass
Ownership Renounced?
No Mint FunctionFail
Liquidity LockedFail
Not a ProxyPass
HoneypotNoneBuy Tax0.0%Sell Tax0.0%

Holder Composition

42.3% in top 10
36.2% in wallets6.1% in contracts
Effective Concentration38.7%

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

$133.3K across 4 pairs
Uniswap v4ETHanalysed$81.5K61.2%Uniswap v3WETH$50.3K37.7%Uniswap v2WETH$8350.6%Uniswap v3WETH$6050.5%

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 Holder59.5%
Top-3 Unlocked99.6%

Key Addresses

7 addresses
Deployer
0xe74a…e75e
Unlocked LP Held By
0x858d…34c50xb432…c1a00xf189…ad290xfb44…95c30x728a…df880x106b…2b43

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

What Raised This Score

7 factors
  • Owner can change any holder's balance (seize or credit tokens)
  • Hidden owner — control survives an apparent renounce
  • A privileged address controls a switch that decides whether transfers go through
  • Mintable supply — no cap found, dilution unbounded
  • Ownership status UNKNOWN (owner could not be resolved)
  • Liquidity NOT locked (100% of the pool; this pool is 61% of DEX liquidity) — held by independent providers — market-depth risk
  • Top-10 concentration > 30% (42.3% total → 38.7% effective; 36.2% in EOAs, 6.1% in contracts)

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

Related Audits

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