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Freedom251 › Blog › access control

Paxos Gold (PAXG) Security Audits: What V1 and V2 Establish About Reentrancy and Access Control

By Freedom251 Team · · 5 min read

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The available official sources confirm that audit reports are listed for both PAXG V1 and V2, but they do not establish whether either version was found free of reentrancy or access-control flaws. The reports must be matched to the code version and scope they reviewed; a repository listing is not a clean-audit conclusion. Paxos’s repositories also document privileged roles and freeze, pause, supply-control, and upgrade capabilities, which are important trust assumptions even when they are not evidence of a code vulnerability.

Is Paxos Gold (PAXG) safe?

There is not enough information in the published report listings to give a blanket “safe” or “no vulnerabilities” verdict about PAXG’s contracts. The official Paxos repositories identify reports for different implementations, but the listings alone do not disclose each report’s detailed findings, severity ratings, exact review scope, or remediation status. In particular, they do not establish that a specific deployed implementation passed reentrancy or access-control testing.

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That distinction matters because an audit is a review of specified code and scope, not a guarantee that every version, deployment, configuration, or operational practice is free of risk. To answer the question for a particular deployment, a reader would need the corresponding report and evidence that the deployed code matches the version and components the report assessed.

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Has PAXG been audited?

Yes. Paxos’s official repositories list audit reports for the V1 and V2 code. The available listings do not support a comparison of audit quality or results, because they do not provide the reports’ full findings and scope details here.

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Implementation What the official repository identifies What the listing does not establish
PAXG V1 The legacy PAXG repository identifies ChainSecurity and CertiK reports. Report dates, reviewed files and functions, specific reentrancy or access-control findings, severity ratings, and remediation status are not stated in the repository listing described here.
PAXG V2 The shared Paxos token-contract repository identifies a Zellic report for PAXG V2. Report dates, reviewed files and functions, specific findings, severity ratings, and remediation status are not stated in the repository listing described here.

The V1 repository identifies the newer shared token-contract repository as the home of V2. The shared repository locates V2 at contracts/stablecoins/PAXG.sol and archives the V1 implementation at contracts/archive/PAXGImplementation.sol. Those labels help distinguish the code families; they do not, by themselves, prove which implementation is currently active at a given address.

A meaningful audit comparison would require each report’s date, in-scope commit or files, excluded components, findings and severity definitions, plus evidence of fixes and the code deployed afterward. Without those details, it would be inaccurate to say that either version had “no vulnerabilities,” or that a particular reentrancy or access-control issue was tested and cleared.

What access-control powers are documented?

Paxos’s V2 repository names five roles: DEFAULT_ADMIN_ROLE, PAUSE_ROLE, ASSET_PROTECTION_ROLE, SUPPLY_CONTROLLER_MANAGER_ROLE, and SUPPLY_CONTROLLER_ROLE. The V1 repository describes owner-controlled pause, supply-control, and asset-protection functions.

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These are privileged capabilities and therefore part of the security model: they determine who can administer the contract and exercise sensitive controls. Their existence is not itself proof of an access-control flaw. Whether the controls are correctly restricted, and whether an auditor identified a defect in their implementation, depends on the code and findings in the relevant report.

The V2 repository says controlling addresses use multisignature contracts. That repository statement does not identify the current signers, signature threshold, operational security, or the on-chain role assignments. It should not be taken as proof that any present-day administrative arrangement is secure.

Can Paxos freeze PAXG?

Yes. Paxos’s PAX Gold Terms and Conditions describe Paxos’s rights to freeze and upgrade PAXG, and describe circumstances in which tokens or underlying gold may be frozen or seized, including legal directives and other listed conditions. These are issuer-level powers disclosed in the terms; they are separate from whether the contract contains a coding flaw.

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The terms describe each PAXG as representing one fine troy ounce of London Good Delivery gold and tokens as representing fractional ownership of allocated gold held in segregated custody. Those contractual and custody statements are not smart-contract audit findings.

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Paxos also distinguishes its authority over the token from the operation of Ethereum. Its terms state: “We do not own or control the Ethereum blockchain and are not responsible for the operation of the Ethereum network and make no guarantees regarding the network’s security, functionality, or availability.” Issuer-controlled contract actions and underlying-chain availability are different risk surfaces.

What changed in the PAXG V2 upgrade?

Paxos’s upgrade guide says PAXG moved from its original Solidity 0.4.24 implementation to the shared PaxosTokenV2 architecture. This is a change of implementation, not just a new label, so an audit conclusion about V1 cannot automatically be applied to V2.

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Storage migration and frozen-address state

The guide documents a one-time storage migration and says the existing PAXG frozen-address mapping remains at storage slot 7. V2 overrides the frozen-state accessors to use that location. This makes storage compatibility and preservation of existing state relevant review topics for the upgrade.

Initialization guard and upgrade tests

The guide says the initialization path uses OpenZeppelin’s reinitializer(2) so initialization and migration cannot run a second time. It identifies test/paxg/UpgradeToV2Test.js and test/paxg/StorageLayoutTest.js as PAXG-specific tests covering state preservation and frozen-mapping checks. These descriptions explain the intended coverage; they do not establish that the tests were run in a particular environment or independently validate the upgrade.

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Additional token features

The shared repository says PAXG V2 supports EIP-2612 permits and EIP-3009 transferWithAuthorization. These features extend the token’s authorization interface. Their presence should be understood as part of the V2 implementation and its review scope, not as evidence for or against a particular audit finding.

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Does the audit picture cover every PAXG deployment?

No. Paxos says it upgraded PAXG contracts for cross-chain functionality and describes the Solana version as using Token-2022 and its Permanent Delegate extension. That Solana implementation has chain-specific mechanics; a report about an Ethereum Solidity contract should not be treated as coverage of it unless the report explicitly includes that implementation.

The legacy repository gives an Ethereum proxy address, but a repository address alone does not verify the implementation currently behind a proxy. Any claim about live deployment or implementation status requires a current, independent check and must be matched to the relevant audit scope.

How to assess an audit claim about PAXG

  • Identify the chain and exact contract or implementation being discussed.
  • Match it to the report for that version; do not treat a V1 report as a V2 review.
  • Check the report’s date, in-scope code, exclusions, findings, severity definitions, and remediation evidence.
  • For claims about administrator powers, distinguish intended privileged functionality from a flaw that lets an unauthorized party obtain or misuse that power.
  • For upgrade claims, check whether storage layout, migration behavior, initialization guards, and preserved state were within the actual review scope.

Until those report details are checked against the relevant deployed code, the defensible conclusion is limited: PAXG has official audit reports listed for V1 and V2, and Paxos documents meaningful issuer and administrator powers, but the available listings do not establish a clean result for reentrancy or access control.

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access controlcrypto auditsPAXGPaxos GoldReentrancySmart Contract Security

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