Closed quinn-dougherty closed 2 years ago
NMFN is really a family of properties.
no validation in minting policy leads to someone outside of the schema minting tokens without validation.
Cardano does not guarantee against this.
specifically infinite mint could be relevant for LP tokens.
additionally, we might consider any trade that results in one-sided extraction (or disproportionate extraction) to violate NMFN properties.
finally the LP providers themselves might be able to gain disproportionate benefit relative to the volume of their Liquidity provided to the protocol and the activity on a given trading pair, this would constitute a NMFN violation as well.
The extent to which this is covered in audit is a comment about future work in src/postamble/fv.md
In the future, we may reopen this issue and put it on the cross-repo fv board
Description
NMFN is an intuitively desirable, if a little obvious, property. We do not want people to be able to arbitrarily withdraw assets.
Deliverable
There are a few ways to approach this
Notes
An approach to the predicate: show that any transaction does not decrease the liquidity token value of the dex. Finite enumeration of the ways the value of the dex could be decreased.