zodiac-module-reality

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zodiac-module-reality

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A Zodiac module that uses Reality.eth as an oracle for triggering execution on a Safe.

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# Zodiac Reality Module
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The Reality Module belongs to the [Zodiac](https://github.com/gnosis/zodiac) collection of tools, which can be accessed through the Zodiac App available on [Gnosis Safe](https://gnosis-safe.io/), as well as in this repository.

If you have any questions about Zodiac, join the [Gnosis Guild Discord](https://discord.gg/wwmBWTgyEq). Follow [@GnosisGuild](https://twitter.com/gnosisguild) on Twitter for updates.

### About the Reality Module

This module allows on-chain execution based on the outcome of events reported by [Reality.eth](https://reality.eth.link/). While built initially to execute Gnosis Safe transactions according to Snapshot proposals, this module is framework agnostic. It can enable proposal execution from just about anywhere. For example, it can bring Discord polls on-chain.

This module allows for execution of transactions that have been approved through a Reality.eth question for execution. The question asked on Reality.eth consists of a proposal ID (e.g. an IPFS hash), which can be used to provide more information for the transaction to be executed, as well as an array of EIP-712-based transaction hashes that represent the transactions that should be executed.

These two components (`proposalId` and `txHashes`) uniquely identify a question on the module. While it is possible to ask the same question with different Reality.eth question parameters, it is only possible to execute transactions related to a specific question once.

Once the question on Reality.eth has resolved to "yes", meaning that the transactions should be executed, they are submitted to the immutable executor defined in the module. Transactions defined in questions that resolve to "no" or "invalid" cannot be executed by the module.

This module is intended to be used with [Gnosis Safe](https://github.com/gnosis/safe-contracts), but it is ultimately framework agnostic.

### Setup Guides

This module can be setup either using the Zodiac App's UI or by using command line tools; both methods allow for connecting to Snapshot.

[View docs for using the Zodiac App](https://gnosis.github.io/zodiac/docs/tutorial-module-reality/get-started)

[View docs for using the command line](./docs/setup_guide.md)

### Features
- Submit proposals uniquely identified by a `proposalId` and an array of `txHashes`, to create a Reality.eth question that validates the execution of the connected transactions.
- Proposals can be marked invalid by the `executor` using `markProposalInvalid`, thereby preventing the execution of the transactions related to that proposal.
- The Reality.eth question parameters (`templateId`, `timeout`, `arbitrator`) can be set on the module by the executor.
- A `minimum bond` can be set, which is the amount required to be staked on a Reality.eth answer before the transactions can be executed.
- A `cooldown` can be specified representing the minimum amount of time required to pass after the Reality.eth question has been answered before the transactions can be executed.

### Flow
- Create question on Reality.eth via the `addProposal` method of this module.
- The question needs to be answered on Reality.eth with yes (1) to approve it for execution.
- Once the question has a result and the `cooldown` period has passed, the transaction(s) can be executed via `executeProposal`.

### Definitions

#### Transaction nonce or index

The `nonce` of a transaction makes it possible to have two transactions with the same `to`, `value` and `data` but still generate a different transaction hash. This is important as all hashes in the `txHashes` array should be unique. To make sure that this is the case, the module will always use the `index` of the transaction hash inside the `txHashes` array as a nonce. So the first transaction to be executed has the `nonce` with the value `0`, the second with the value `1`, and so on.

Therefore we can simplify it to the following statement: The `nonce` of a Reality Module transaction is equal to the `index` of that transaction's hash in the `txHashes` array.

#### Proposal nonce
There is a chance that a question is marked invalid on the oracle (e.g. if it is asked too early). In this case it should be possible to ask the question again, and we need to be able to generate a new question ID. For this it is possible to provide the next higher `nonce` compared to the last invalidated proposal. So in case the first proposal (with the default `nonce` of `0`) was marked invalid on the oracle, a new proposal can be submitted with the `nonce` of `1`.

#### Oracle / Reality.eth

The Reality Module depends on an oracle to determine if a proposal was expected and deemed valid. The following assumptions are being made:
- The oracle MUST implement the [Reality.eth contract interface](./contracts/interfaces/Realitio.sol).
- It MUST not be possible to ask the same question with the same parameters again.
- Once a result is known and finalized for a question, it MUST not change.
- The oracle MUST use the same question ID generation algorithm as this module.

The reference oracle implementations are the Reality.eth contracts. These can be found on:

- https://www.npmjs.com/package/@reality.eth/contracts
- https://github.com/realityETH/monorepo/
  - ETH: https://github.com/RealityETH/monorepo/blob/main/packages/contracts/flat/RealityETH-3.0.sol
  - ERC20: https://github.com/RealityETH/monorepo/blob/main/packages/contracts/flat/RealityETH_ERC20-3.0.sol

### Failed transactions

The Reality Modules requires proposal transactions are successful (e.g. transactions should not internally revert for any reason). If any of the transactions of a proposal fail, it will not be possible to continue with the execution of the following transactions. This is to prevent subsequent transactions being executed in a scenario in which earlier transactions failed due to the gas limit being too low or due to other errors.

Transactions that failed will _not_ be marked as executed, and therefore, they can be executed at any later point in time. This is a potential risk, and therefore it is recommended to either set an answer expiration time or invalidate the proposal (e.g. via another proposal).

### Answer expiration

The Reality Module can be configured so that positive answers will expire after a certain time. This can be done by calling `setAnswerExpiration` with a duration in seconds. If the transactions related to the proposal are not executed before the answer expires, it will not be possible to execute them. This is useful in the case of transactions that revert and therefore cannot be executed in order to prevent them from being unexpectedly executed in the future. Negative answers (no or invalid) cannot expire.

Note: If the expiration time is set to `0`, answers will never expire. This also means answers that expired before will become available again. To prevent this, it is recommended to call `markProposalWithExpiredAnswerAsInvalid` immediately after any proposal expires (or on all outstanding expired answers prior to setting the expiration date to `0`). This will mark a proposal with an expired answer as invalid. This method can be called by anyone.

### EIP-712 details

[EIP-712](https://github.com/Ethereum/EIPs/blob/master/EIPS/eip-712.md) is used to generate the hashes for the transactions to be executed. The following EIP-712 domain and types are used.

#### Domain

```
{
  EIP712Domain: [
    { type: "uint256", name: "chainId" },
    { type: "address", name: "verifyingContract" }
  ]
}
```

#### TransactionType

```
{
  Transaction: [
    { type: "address", name: "to" },
    { type: "uint256", name: "value" },
    { type: "bytes", name: "data" },
    { type: "uint8", name: "operation" },
    { type: "uint256", name: "nonce" }
  ]
}
```

### Solidity Compiler

The contracts have been developed with [Solidity 0.8.0](https://github.com/ethereum/solidity/releases/tag/v0.8.0) in mind. This version of Solidity made all arithmetic checked by default, therefore eliminating the need for explicit overflow or underflow (or other arithmetic) checks.

### Audits

An audit has been performed by the [G0 group](https://github.com/g0-group).

No issues have been discovered.

The audit results are available as a pdf in [this repo](audits/ZodiacRealityModuleSep2021.pdf) or on the [g0-group repo](https://github.com/g0-group/Audits/blob/e11752abb010f74e32a6fc61142032a10deed578/ZodiacRealityModuleSep2021.pdf).

### Security and Liability

All contracts are WITHOUT ANY WARRANTY; without even the implied warranty of MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE.

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