Zellic Completes Audit of Chateau Capital

Chateau Team
min read

Zellic has completed the audit of Chateau Capital's RWA token contracts. Zellic is a firm that specializes in securing emerging technologies with 100+ projects audited.

Chateau Capital treats security as a top priority and will undergo an audit for each major mainnet release. Security audits help ensure the safety of any customer funds involved with Chateau smart contracts.

Zellic conducted the security assessment for Chateau Capital from February 9th to February 11th, 2024. During this engagement, Zellic reviewed Chateau’s code for security vulnerabilities, design issues, and general weaknesses in security posture.

By completing this audit, Chateau was able to implement fixes for all findings.

The full report has been published online and can be read in its entirety here.

Audit Results

The initial audit uncovered 3 critical, 1 medium and 2 informational findings.

At the completion of the audit, Chateau Capital acknowledged all identified issues and successfully implemented the necessary fixes, as is noted in the report.

Complete details of each issue can be found in the full report, but below are links to the Chateau team's commits that addressed each one.

Critical issue 1: Fixed

Please see Commit 8184d6c5 ↗

Critical issue 2: Fixed

Please see Commit 849a8a63 ↗

Critical issue 3: Fixed

Please see Commit c296913a ↗, 8a221f45 ↗

Centralization Risks of RWA Products

There was one Medium security risk highlighted by the Zellic team, in regards to centralization.

It is important to note that RWA products, by their very nature, are not fully trustless and decentralized. The Chateau Capital team must withdraw on-chain staked assets to trade them into real-world assets.

This process can only be done with a central intermediary involved.

To further mitigate smart contract risk in regards to withdrawing of the funds, the Chateau Capital team utilizes a 2/3 Multisig for $CHAD.D.

Our full statement on trust assumptions is below:

Tokens issued by Chateau Protocol represent shares in an issuing entity, or fund. Investorswho participate in token issuances on Chateau.capital are placing trust in the integrity of thetoken offering as stipulated in the offering document, and have full legal recourse against theissuing entity, which may be Chateau Capital Corp. or other parties using Chateau’s platform.

To mitigate smart contract risk, Chateau utilizes a 2/3 Multisig for $CHAD.D, and strive to movestablecoins out of the contract as soon as possible during issuance windows. Custody of theunderlying instruments are held with the issuing fund, or professional custody firms, with theissuer providing ongoing updates to token holders. Token investors can also contact the Issuerat any time for up to date audits of the underlying assets.

Chateau will also apply for Virtual Asset licenses in several jurisdictions to enhance compliance.

Mainnet Launch

With our smart contract audit complete, we are gearing up for our mainnet launch on Arbitrum One. Our first offering will be Chateau Alternative Debt, which yields 15% and is ran by a team of Wall Street veterans who have consistently returned 18-21% annually since 2011.

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