Nerite audit
A private security review of Nerite (CDP stablecoin), conducted with Sherlock and completed on 3rd February 2025 over 15 days. 0xSimao disclosed 3 findings: 1 medium and 2 low.
What Nerite is
Nerite is a CDP stablecoin on Arbitrum built on Liquity v2: users open troves against multiple collateral types to mint USND, interest rates are user-set with redemptions ordering risk, and a stability pool backstops liquidations.
Scope
The Sherlock review covered the NeriteOrg/nerite repository, Liquity v2's machinery under Nerite's parameters and collateral onboarding, with attention on initialisation, token wiring and the paths where pausable or blacklistable collaterals meet liquidation flows.
Medium severity findings
Low severity findings
- New debt from adjusted trove is double counted towards the limit
- Pausable or Blacklist tokens may cause liquidations to fail
The report