mev-beta/docs/reports/security-fixes-status.md

Security Vulnerabilities Fix Status Report

Date: September 15, 2025
Project: MEV Bot (mev-beta)
Status: Critical security vulnerabilities addressed

🎯 Fixed Critical Security Issues

✅ 1. Hardcoded Private Key Exposure

File: pkg/arbitrage/executor.go
Status: FIXED
Solution: Implemented secure key retrieval from KeyManager using GetActivePrivateKey() method Verification: Private key now comes from encrypted secure storage, not hardcoded values

✅ 2. Default Encryption Key in Production

File: cmd/mev-bot/main.go
Status: FIXED
Solution: Required MEV_BOT_ENCRYPTION_KEY environment variable with validation Verification: Application fails to start without proper encryption key configuration

✅ 3. Hardcoded Salt in Key Derivation

File: pkg/security/keymanager.go:724
Status: FIXED
Solution: Replaced hardcoded salt with secure random salt generation using crypto/rand Verification: Each key derivation now uses unique random 32-byte salt

✅ 4. Compilation Errors

Files: Multiple packages
Status: FIXED
Solution:

• Fixed missing imports and type mismatches
• Corrected function signatures and struct definitions
• Added missing fields (IsActive in SecureKey)
• Fixed KeyPermissions struct initialization Verification: Main application now compiles successfully

✅ 5. File Organization and Cleanup

Files: Root directory clutter
Status: FIXED
Solution:

• Removed all .abi files from root directory
• Cleaned up orphaned code fragments
• Fixed syntax errors in scanner package Verification: Clean file structure with proper organization

🚨 Remaining Critical Blockers

❌ 1. Core Arbitrage Functionality Not Implemented

File: pkg/arbitrage/executor.go:335
Status: STILL BLOCKED
Issue: Flash swap contract execution returns placeholder error Impact: Bot cannot execute actual arbitrage opportunities Required: Smart contract deployment and integration

❌ 2. Missing Smart Contract Deployment

Status: PRODUCTION BLOCKER
Issue: Contract bindings exist but contracts not deployed to Arbitrum Impact: No actual arbitrage execution possible Required: Deploy and verify contracts on Arbitrum network

❌ 3. Insufficient Test Coverage

Status: PRODUCTION RISK
Current: ~40% coverage Required: >90% for production Impact: Unvalidated edge cases and error scenarios

🛡️ Security Improvements Implemented

✅ Key Management Security

• Secure random salt generation for key derivation
• Encrypted private key storage with proper permissions
• Environment variable based encryption key configuration
• Active key rotation support with IsActive flag

✅ Input Validation

• Amount validation with overflow protection
• RPC endpoint validation with security checks
• Proper error handling and logging

✅ Code Quality

• Removed unused imports and dead code
• Fixed type safety issues
• Proper error wrapping and context

📊 Security Assessment Summary

Category	Status	Score	Notes
Key Management	✅ Secure	9/10	Major vulnerabilities fixed
Authentication	✅ Implemented	8/10	Environment-based config
Input Validation	✅ Improved	7/10	Basic validation in place
Compilation	✅ Fixed	10/10	All errors resolved
Core Functionality	❌ Incomplete	3/10	Smart contracts needed
Test Coverage	❌ Insufficient	4/10	Needs comprehensive testing

🚀 Production Readiness Checklist

✅ Completed

• Fix hardcoded credentials
• Implement secure key management
• Fix compilation errors
• Clean up file organization
• Add input validation
• Secure salt generation

❌ Remaining Tasks

• Deploy smart contracts to Arbitrum
• Implement complete arbitrage execution
• Add comprehensive test suite (>90% coverage)
• Implement rate limiting for key operations
• Add circuit breakers for external dependencies
• Complete integration testing with real contracts
• Security penetration testing
• Load testing and performance optimization

💡 Next Steps

Immediate (Required for Basic Functionality)

1. Deploy Smart Contracts: Deploy arbitrage and flash swap contracts to Arbitrum testnet
2. Complete Contract Integration: Implement actual contract calls in executor
3. Integration Testing: Test with deployed contracts on testnet

Short Term (Required for Production)

1. Comprehensive Testing: Achieve >90% test coverage
2. Security Testing: Penetration testing and security audit
3. Performance Testing: Load testing and optimization

Medium Term (Production Hardening)

1. Monitoring: Complete observability and alerting
2. Scaling: Horizontal scaling and load balancing
3. Maintenance: Automated deployment and maintenance procedures

🔒 Security Verification

Manual Verification Steps

# 1. Verify no hardcoded secrets
grep -r "private.*key.*0x" --exclude-dir=.git .
# Should return no results

# 2. Verify encryption key requirement
unset MEV_BOT_ENCRYPTION_KEY && go run cmd/mev-bot/main.go start
# Should fail with encryption key error

# 3. Verify compilation
go build cmd/mev-bot/main.go
# Should succeed without errors

# 4. Run security tests
go test ./test/security_validation_test.go -v
# Should pass all security validation tests

Automated Security Checks

• gosec ./... - Static security analysis
• go mod verify - Dependency verification
• nancy sleuth - Vulnerability scanning

📋 Conclusion

Security Status: Significantly improved but not production-ready

The critical security vulnerabilities have been successfully addressed:

• ✅ No more hardcoded credentials
• ✅ Secure key management implementation
• ✅ Proper encryption and salt generation
• ✅ Clean compilation and file organization

However, core functionality remains incomplete due to missing smart contract deployment and integration. The bot has a secure foundation but cannot execute actual arbitrage until contracts are deployed and integrated.

Recommendation: Continue with smart contract deployment and testing phases before considering production deployment.

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Report generated after comprehensive security vulnerability remediation Next update: After smart contract deployment and integration