Napier Finance / napier-v2

Napier v2 is a modular yield tokenization platform, allowing anyone to fix yields and trade yield-bearing tokens. It is similar to Pendle but with more flexibility and permissionless by design, built on the Curve Finance AMM.

Anyone called curator, can deploy a yield tokenization instance literally owned by the curator. Napier doesn’t have any privilege permissions by default.

Codebase consists of four main components; Factory, AMM, Zap and PrincipalToken.

Factory

Factory creates new instances of AMM and PrincipalToken(PT), which supports multiple AMM types and modules.

• Managing registering module implementations

AMM

2-token AMM for trading yield-bearing token against PT, which determines how much fixed yield users can get. On launch we support Curve finance TwoCryptoNG pool suitable for trading 2 volatile assets.

PrincipalToken

The core primitive that splits yield-bearing tokens into Principal Tokens(PT) and Yield Tokens(YT).

PT represents the principal of yield-bearing assets. YT represents variable interests that the yield-bearing token accumulates.

• Modular architecture with separate modules for access control, fees, rewards, and verification

• Access control system completely controlled by curators

• Implements EIP5095 standard for fixed-rate tokens

• Handles deposits, redemptions, and yield collection

• Includes fee mechanisms for issuance, performance, and redemption

• Yield accrual mechanism that tracks and distributes yields to YT holders

• Fee system with splits between curators and Napier protocol

• Support for additional reward tokens through reward proxy module

Zap

A Periphery contract for main entrypoint for user interactions.

• Allows users to perform complex interactions in a single transaction.
• Integrates with swap aggregators like 1inch.

Prize distribution and scoring

• Total Prize Pool: $72000

• Scoring described in the competition scoring page.

• Findings Severities described in detail on our docs page.

Documentation

• Documents for Cantina competition
• Docs for Frontend Integration
• Overview on PrincipalToken.sol
• Overview on how interest accumulation works
• Napier Math whitepaper
• Known issues listed on README

Scope

• Repository: https://cantina.xyz/code/58cd719b-9004-4eca-a113-41d1691c0711/README.md
• Total LOC: 3529 nSLOC

File	Lines	nLines	nSLOC	Comment Lines
src/interfaces/IRewardProxy.sol	12	7	4	1
src/interfaces/IPoolDeployer.sol	10	6	3	2
src/interfaces/IHook.sol	12	6	4	1
src/interfaces/IWETH.sol	7	5	3	1
src/interfaces/EIP5095.sol	70	12	4	45
src/tokens/PrincipalToken.sol	1111	1010	600	218
src/tokens/YieldToken.sol	67	67	46	8
src/Types.sol	104	104	55	38
src/modules/RewardProxyModule.sol	62	57	23	24
src/modules/FeeModule.sol	94	90	65	13
src/modules/resolvers/ERC4626InfoResolver.sol	50	50	36	5
src/modules/resolvers/SharePriceResolver.sol	53	53	40	5
src/modules/resolvers/ExternalPriceResolver.sol	64	64	43	12
src/modules/resolvers/CustomConversionResolver.sol	54	54	41	5
src/modules/resolvers/VaultInfoResolver.sol	13	7	3	3
src/modules/aggregator/AggregationRouter.sol	108	104	70	15
src/modules/BaseModule.sol	38	36	25	4
src/modules/VerifierModule.sol	89	84	52	21
src/modules/AccessManager.sol	135	108	63	42
src/modules/deployers/TwoCryptoDeployer.sol	58	46	30	8
src/modules/connectors/DefaultConnectorFactory.sol	35	35	25	1
src/modules/connectors/VaultConnectorRegistry.sol	32	32	23	1
src/modules/connectors/VaultConnector.sol	43	20	15	7
src/modules/connectors/ERC4626Connector.sol	108	85	67	1
src/Constants.sol	20	20	12	4
src/utils/LibBlueprint.sol	167	159	96	44
src/utils/HookValidation.sol	26	26	16	4
src/utils/TwoCryptoNGPreviewLib.sol	95	87	50	26
src/utils/YieldMathLib.sol	236	216	75	121
src/utils/ZapHookEncoder.sol	63	47	35	6
src/utils/ModuleAccessor.sol	53	53	40	9
src/utils/RewardMathLib.sol	106	97	42	51
src/utils/Casting.sol	10	10	7	1
src/utils/FeePctsLib.sol	69	53	40	2
src/utils/LibTwoCryptoNG.sol	341	301	232	64
src/utils/CustomRevert.sol	26	26	16	8
src/utils/LibApproval.sol	47	47	27	15
src/utils/ContractValidation.sol	18	18	13	1
src/utils/ZapMathLib.sol	44	40	23	10
src/utils/LibExpiry.sol	18	18	13	1
src/utils/TokenNameLib.sol	48	48	36	2
src/zap/TwoCryptoZap.sol	1491	1291	846	278
src/zap/ZapBase.sol	15	15	10	1
src/Events.sol	427	364	280	38
src/Errors.sol	94	94	67	11
src/Factory.sol	305	278	165	68
src/types/TwoCrypto.sol	8	8	5	1
src/types/ApproxValue.sol	8	8	5	1
src/types/ModuleIndex.sol	18	18	11	3
src/types/FeePcts.sol	8	8	5	1
src/types/Token.sol	35	35	22	4
Totals	6225	5527	3529	1256

Target networks

• Optimism and OP stack
• Ethereum Mainnet
• Arbitrum
• EVM networks supporting PUSH0 opcode

System Roles and Privileges

• Napier DAO: Trusted
• Napier multisig: This entity manages the upgrade role in the Factory until Napier DAO is activated. Trusted
• Curator(PT creator): Trusted for their PrincipalTokens only. Cannot affect other PrincipalTokens
• Roles granted by curator: Trusted within the granted access control.
• Regular users:
  • Any other user is considered untrusted.
  • Users are responsible for interactions with any PrincipalToken. A curator may be evil because of Napier v2 permissionless nature.

Build Instructions

1. Install Foundry
2. Install pnpm
3. Follow README instructions on repo

Basic POC Test

Please note that mandatory POC rule applies for this competition We have a simple PoC setup here. In order to further configure the principal token or Zap, refer to:

• test/shared/PrincipalToken.t.sol
• test/shared/Zap.t.sol
• test/shared/Fork.t.sol

Out of scope

• yAudit Napier V2 Review.pdf
• napier-v2-report-xuwinnie-202501.pdf (Preliminary report)

• Finding related to contracts in `src/lens/**`
• Issues described in our documentation: in-code comments, in the README and in the whitepapers.
• Issues found in previous security reviews.
• Issues related to deploy scripts or tests
• Third party integrations not functioning as advertised
• Incompatibilities with ERC-4626 and ERC-20 unless they pose a direct security risk
• Issues related to non-standard tokens and their behaviors
• Issue related to Non Standard ERC4626 Resolver where user provide malicious how share calculated
• Issue with faulty configured access control
• Issue with faulty configured parameters by curator
• Malicious share calculation in non-standard ERC4626 resolvers
• Issues with custom VaultConnector implementations provided by users
• Incorrect hardcoded addresses would be considered low, unless there is a direct loss of funds on deployment from using them.

• Automated findings by Lightchaser https://gist.github.com/ChaseTheLight01/dfc4603fb77fa42b0f7546bd09a4a4e9

Contact Us

For any issues or concerns regarding this competition, please reach out to the Cantina core team through the Cantina Discord.