Pre-release notice:
The Quantum Readiness Index is still being reviewed and refined. Reports may include rough edges, including incomplete and/or incorrect coverage.

DeFi prediction-market token

Rain RAIN

Rain (RAIN) is a standard ERC-20 governance token deployed on Arbitrum One, a Layer-2 optimistic rollup on Ethereum. The token uses a UUPS-upgradeable proxy pattern with single-owner admin controls for minting, oracle configuration, and proxy upgrades. Per QRI Section 7.2 (Token Inheritance), RAIN inherits the full quantum vulnerability profile of its host chain: all transaction authorization, account ownership, and admin key operations rely on ECDSA/secp256k1 signatures verified by the Arbitrum/Ethereum execution layer. The project has published no cryptographic inventory, quantum threat model, PQC migration roadmap, or post-quantum design work of any kind. The Hacken audit (August 2025) confirms standard ERC-20 compliance and classical smart contract security but contains no quantum-specific review. Account abstraction via ERC-4337 (Alchemy smart accounts) provides gas sponsorship but does not alter the underlying ECDSA signature scheme. Arbitrum itself is independently assessed as Migration Stage 0 (Unaware) with QRI 26/100. The RAIN token has zero post-quantum protection at any layer and zero documented quantum readiness work.

Not AssessedInherits L1 Score [Arbitrum]ECC-Only
Stage 0
Confidence Medium
Urgency [Migration Required]
Review Status Draft
Evaluated 2026-06-01
Scope ERC-20 governance token on Arbitrum L2; inherits host-chain cryptographic posture. Evaluation covers token-specific admin/governance keys and inherited Arbitrum/Ethereum ECDSA exposure.
AI-generated report. This report was produced by the evaluator and synthesis pipeline. Review status: draft.

Category breakdown

QRI Factors

Algorithm & Implementation Assurance 0 / 20
Migration Mechanism, Governance & Ecosystem Coordination 0 / 15
Migration Status & Value-at-Risk 0 / 25
Production Cryptographic Protection 0 / 35
Security Assessment & Evidence Preparedness 0 / 5

Critical Quantum Blockers

  • All transaction authorization and token admin functions rely on ECDSA/secp256k1 inherited from Arbitrum/Ethereum — no PQC or hybrid-PQC protection at any layer.
  • No public cryptographic inventory or quantum threat model has been published by the project.
  • No PQC migration roadmap, design, prototype, or testnet exists.

Key Risks

  • All RAIN token holdings and admin keys are exposed to future quantum key-recovery attacks via ECDSA/secp256k1 — long-exposure risk for any address that has sent a transaction (public key revealed on-chain).
  • Single-owner admin key controls daily minting ($50,000 USD equivalent), oracle configuration, treasury updates, and proxy upgrades — a quantum-compromised admin key could enable unlimited inflation and contract takeover.
  • Cross-chain bridge dependencies (Ethereum, BNB Chain, Base) introduce additional quantum-vulnerable settlement paths.
  • No migration mechanism exists to protect value in the event of a quantum computing breakthrough — no freeze, deprecation, burn, or recovery policy is documented.
  • Upgradeable proxy pattern means contract logic can be changed at any time by the owner, but this does not address the underlying ECDSA vulnerability of the owner key itself.

Assurance Notes

  • Hacken audit (Aug 2025) covers classical ERC-20 smart contract security only; no quantum-specific review, no PQC algorithm assessment, no cryptographic inventory validation.
  • Token contract is upgradeable (UUPS proxy) with single-owner admin key controlling minting, oracle configuration, treasury updates, and proxy upgrades — centralization risk noted by Hacken but not quantum-specific.
  • No public cryptographic inventory, quantum threat model, or PQC migration roadmap exists in any primary source (whitepaper, documentation, GitHub, audit reports).
  • Arbitrum host chain is independently rated as Migration Stage 0 (Unaware) by LayerQu with QRI 26/100, confirming no PQC protection at the L2 layer.
  • Account abstraction (ERC-4337 via Alchemy smart accounts) is used for gas sponsorship but does not alter the base ECDSA/secp256k1 signature verification path.
  • The 'Rain' symmetric-key primitive (CCS 2022) discussed in academic post-quantum signature literature (Rainier scheme) is entirely unrelated to this Rain Protocol project.

Non-Scoring Caveats

  • Token contract is upgradeable via UUPS proxy with single-owner control — centralization risk noted by Hacken audit but not a quantum-specific scoring issue.
  • Protocol-level audit is described as 'underway' in the whitepaper but not yet published as of evaluation date.
  • Cross-chain bridging to Ethereum, BNB Chain, and Base is supported via standard mechanisms — bridge quantum risk is inherited from host chains and bridge infrastructure.
  • Total token supply is 1.15 trillion RAIN with controlled inflation via daily minting ($50,000 USD equivalent) — value-at-risk figures depend on market price and circulating supply dynamics.

Evidence record

Claims and Caveats

Security Assessment & Evidence Preparedness

Public cryptographic inventory and quantum threat model

Claim: No public cryptographic inventory, quantum threat model, or PQC migration roadmap exists in any Rain Protocol primary source.

Coverage basis: Absence of evidence across whitepaper, documentation, GitHub, and audit reports.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical uncertainty · Score treatment: score-reducing

Quantum blocker: No public cryptographic inventory — Readiness & Risk Cap 10

Assurance: Exhaustive search of primary sources (whitepaper, official site, GitHub repositories, Hacken audit) confirms zero quantum-related documentation.

The whitepaper (v2.0, March 2026) details tokenomics, governance plans, and Hacken audit results but contains no mention of cryptography, signatures, quantum risk, or PQC.

Security Assessment & Evidence Preparedness

Public evidence record supporting assessment

Claim: No evidence record (code references, specs, audits, transaction examples) supporting a quantum risk assessment exists.

Coverage basis: Absence of evidence.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical uncertainty · Score treatment: score-reducing

Assurance: The archived rain-protocol GitHub repo (last push Oct 2023) predates the current Arbitrum deployment and contains no quantum-related content.

The rainlanguage/rainlang repo describes an on-chain EVM smart contract language with no cryptographic primitives beyond standard EVM operations.

Production Cryptographic Protection

Spend authorization / transaction signatures

Claim: All RAIN token transactions and admin operations use ECDSA/secp256k1 signatures inherited from Arbitrum/Ethereum. No PQC or hybrid-PQC signature support exists.

Coverage basis: Inherited from Arbitrum L2 host chain; confirmed by token contract verification on Arbiscan and Hacken audit.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Quantum blocker: Active production spend authorization remains entirely ECC-only — Readiness & Risk Cap 40

Assurance: Hacken audit (Aug 2025) confirms Solidity/UUPS implementation on Arbitrum with standard ECDSA transaction authorization. Audit scope is classical security only.

Account abstraction (ERC-4337 via Alchemy smart accounts) is used for gas sponsorship but the underlying signature verification remains ECDSA/secp256k1. The RainAA SDK manages Alchemy smart accounts but does not introduce PQC signature verification.

Production Cryptographic Protection

Account, address, public-key exposure, and key-derivation design

Claim: Standard EVM externally-owned accounts (EOAs) with ECDSA/secp256k1 keys. Public keys are revealed on-chain for any address that has sent a transaction (long-exposure risk). No PQ or hybrid key management.

Coverage basis: Inherited from Arbitrum/Ethereum EVM account model.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: All RAIN token holders and the single admin/owner key use standard Ethereum EOAs. Transacted EOAs have exposed public keys vulnerable to future quantum key-recovery.

The token owner address controls minting, oracle configuration, treasury updates, and proxy upgrades. This single admin key represents a high-value quantum target.

Production Cryptographic Protection

Consensus-critical authentication

Claim: RAIN token has no independent consensus layer. Consensus is inherited from Arbitrum (optimistic rollup) and Ethereum (PoS with BLS validator signatures).

Coverage basis: Token architecture — no validator set, VRF, or finality signatures at the token level.

Implementation score: 1 · Evidence confidence: High

Issue classification: none · Score treatment: not applicable

Assurance: Arbitrum uses optimistic rollup with fraud proofs; Ethereum PoS uses BLS signatures for validators — both quantum-vulnerable but outside token-specific scope.

Whitepaper section H.4 confirms RAIN operates on Arbitrum which inherits Ethereum PoS consensus.

Production Cryptographic Protection

State-integrity and data-availability mechanisms

Claim: No custom state-integrity or data-availability mechanisms beyond Arbitrum's inherited rollup data posting to Ethereum.

Coverage basis: Token architecture — standard ERC-20 with no custom commitments, nullifiers, or proof systems.

Implementation score: 1 · Evidence confidence: High

Issue classification: none · Score treatment: not applicable

Arbitrum posts transaction data to Ethereum L1 for data availability; this inherited mechanism is outside token-specific evaluation scope.

Production Cryptographic Protection

Privacy and proof layers

Claim: No privacy layer exists. All RAIN token balances and transactions are publicly visible on Arbiscan.

Coverage basis: Token architecture — standard ERC-20 with transparent on-chain state.

Implementation score: 1 · Evidence confidence: High

Issue classification: none · Score treatment: not applicable

Production Cryptographic Protection

P2P transport, node identity, and peer authentication

Claim: No independent P2P layer. Network communication is inherited from Arbitrum node infrastructure.

Coverage basis: Token architecture — ERC-20 tokens do not operate independent P2P networks.

Implementation score: 1 · Evidence confidence: High

Issue classification: none · Score treatment: not applicable

Production Cryptographic Protection

Critical wallet, custody, HSM, signer, and hardware-wallet workflows

Claim: Standard EVM wallet ecosystem (MetaMask, WalletConnect, etc.) with ECDSA-only signing. No PQC or hybrid-PQC wallet support for RAIN token operations.

Coverage basis: Inherited from Ethereum/Arbitrum wallet ecosystem.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: The Rain SDK (rain1-labs/rain-sdk) uses standard viem/wagmi wallet clients and Alchemy smart accounts with ECDSA signing. No PQC key management or signature verification is implemented.

The RainAA class manages Alchemy smart accounts for gas-sponsored execution but relies entirely on the underlying EOA's ECDSA signature for authorization.

Migration Status & Value-at-Risk

Percentage of economically relevant value-at-risk protected

Claim: 0% of RAIN token value-at-risk is protected from quantum key-recovery attacks. No PQC migration, protection, or native PQ namespace exists.

Coverage basis: No migration or protection mechanism exists. All value is held in ECDSA-controlled accounts.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: Circulating supply approximately 478 billion RAIN per Arbiscan (June 2026). Market cap approximately $3.4B per CoinMarketCap. All holdings are in ECDSA-vulnerable accounts.

Total supply is 1.15 trillion RAIN with controlled inflation via daily minting ($50,000 USD equivalent). No freeze, deprecation, burn, or recovery policy for quantum-vulnerable value is documented.

Migration Status & Value-at-Risk

Critical wallets migrated, protected, or inherently PQ-native

Claim: No critical wallets (treasury, foundation, exchange holdings, admin keys) have been migrated to PQC or protected by any quantum-resistant mechanism.

Coverage basis: No evidence of any wallet migration.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: Whitepaper mentions multisig governance for protocol upgrades and treasury actions, but multisig keys are ECDSA-based and provide no quantum protection.

Token allocations include 20% marketing/development, 20% reserve/treasury (18-month cliff), 15% ecosystem/staking, 10% team (24-month vesting) — all held in ECDSA-vulnerable addresses.

Migration Status & Value-at-Risk

Legacy vulnerable pools/accounts identified and addressed

Claim: No identification, measurement, deprecation, migration, or freeze of legacy quantum-vulnerable value pools has been performed or documented.

Coverage basis: No evidence of any legacy pool analysis.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

All RAIN token holdings are in standard ERC-20 accounts on Arbitrum. Any address that has sent a transaction has an exposed public key (long-exposure risk). No policy to address dormant or unmigratable holdings exists.

Migration Mechanism, Governance & Ecosystem Coordination

Public migration or protection roadmap

Claim: No public migration roadmap, sequencing, activation criteria, or dependencies for PQC migration exist.

Coverage basis: Absence of evidence across all primary sources.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical uncertainty · Score treatment: score-reducing

Assurance: Whitepaper mentions future DAO governance activation and protocol audit completion as upcoming milestones, but no quantum-specific milestones or migration plans are referenced.

The whitepaper's upcoming milestones include: protocol audit completion, additional blockchain network integration, oracle/dispute framework enhancement, incentive mechanism expansion, and DAO governance implementation — none address quantum readiness.

Migration Mechanism, Governance & Ecosystem Coordination

Migration accessibility and defaults

Claim: No PQ/hybrid account creation, wallet tooling, transaction paths, custody paths, user-facing warnings, education, or migration prompts exist.

Coverage basis: Absence of evidence.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical uncertainty · Score treatment: score-reducing

Assurance: The Rain SDK provides standard EVM transaction building and Alchemy smart account management with no PQC features, quantum warnings, or migration prompts.

Migration Mechanism, Governance & Ecosystem Coordination

Migration enforcement and coordination

Claim: No enforcement mechanisms (deprecation, freeze, disabled legacy signing, restricted withdrawals, unsafe-path blocking) exist for quantum migration. No exchange, custody, bridge, or wallet coordination for PQC transition.

Coverage basis: Absence of evidence.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical uncertainty · Score treatment: score-reducing

Assurance: RAIN is listed on MEXC, BingX, and Gems Trade. No exchange has published PQC migration attestations for RAIN custody.

The upgradeable proxy pattern allows the owner to change contract logic, but this does not constitute a quantum migration enforcement mechanism.

Migration Mechanism, Governance & Ecosystem Coordination

Emergency disclosure, incident-response, or governance process for quantum vulnerabilities

Claim: No quantum-specific emergency disclosure, incident-response, or governance process is documented.

Coverage basis: Absence of evidence.

Implementation score: 0 · Evidence confidence: High

Issue classification: assurance-only caveat · Score treatment: score-reducing

Assurance: Hacken audit recommends automatic emergency actions for critical activities but this is a general security recommendation, not quantum-specific.

DAO governance is planned but not yet activated. Once active, it could theoretically serve as a governance mechanism for quantum emergency response, but no such capability is currently documented or planned.

Algorithm & Implementation Assurance

Uses NIST-standardized or broadly reviewed PQC/hybrid-PQC algorithms

Claim: No PQC or hybrid-PQC algorithms are used. All cryptographic operations rely on classical ECC (secp256k1) and standard EVM hash functions (keccak256).

Coverage basis: Confirmed by token contract source code, Hacken audit, and absence of any PQC claims.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: Token contract uses OpenZeppelin ERC-20 upgradeable patterns with standard EVM cryptographic primitives. No NIST PQC algorithms (ML-DSA, SLH-DSA, ML-KEM) or hybrid constructions are present.

The 'Rain' symmetric-key primitive (CCS 2022) used in the Rainier post-quantum signature scheme is an entirely separate academic project with no connection to Rain Protocol or the RAIN token.

Algorithm & Implementation Assurance

Independent cryptographic and implementation audit for quantum-critical scope

Claim: Hacken audit (Aug 2025) covers classical ERC-20 smart contract security. No quantum-specific audit exists.

Coverage basis: Hacken audit report confirms scope limited to Solidity smart contract security assessment.

Implementation score: 0 · Evidence confidence: Medium

Issue classification: assurance-only caveat · Score treatment: confidence-only

Assurance: Hacken audit is recent (Aug 2025) and covers the RainToken.sol contract at commit f439c92. Audit found 7 findings (1 medium, 6 observations), 5 resolved, 1 accepted, 1 mitigated. Test coverage was 33.33% branch coverage. Audit scope is explicitly classical smart contract security — no PQC algorithm review, quantum threat assessment, or cryptographic inventory validation.

A protocol-level audit is described as 'underway' in the whitepaper but has not been published as of the evaluation date.

Algorithm & Implementation Assurance

Open-source, reproducible implementation

Claim: The RAIN token contract is verified on Arbiscan and the SDK is open source. However, no PQ or hybrid-PQC implementation exists to be open-source or reproducible.

Coverage basis: Classical code is open-source; no PQ code exists.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: Token implementation (v0x47716e35...) is verified on Arbiscan. Rain SDK (TypeScript) is publicly available on GitHub under rain1-labs.

The subfactor is applicable per QRI rules: it cannot be marked N/A merely because the project has not implemented PQ features. The project has open-source classical code but no open-source PQ implementation.

Algorithm & Implementation Assurance

Parameter agility and future upgrade path

Claim: No parameter agility or PQ upgrade path is documented. The token's proxy architecture enables contract upgrades, but no quantum-aware upgrade plan or cryptographic agility design exists.

Coverage basis: No agility documentation or PQ upgrade plan.

Implementation score: 0 · Evidence confidence: High

Issue classification: quantum-critical vulnerability · Score treatment: score-reducing

Assurance: The ERC-1967 UUPS proxy pattern enables implementation upgrades, which could theoretically support future PQ migration at the contract level. However, no plan, specification, or design for cryptographic agility exists, and the underlying ECDSA transaction-signing dependency on Arbitrum cannot be resolved at the token-contract level.

Token-level upgradeability cannot address the fundamental ECDSA dependency of the Arbitrum/Ethereum transaction layer. Any meaningful PQ migration for RAIN requires base-layer (Arbitrum/Ethereum) changes beyond the token contract's control.

Algorithm & Implementation Assurance

Stateful-signature safety (XMSS/LMS-style schemes)

Claim: No stateful PQC signature schemes (XMSS, LMS, or similar) are used in any Rain Protocol component. All signatures are stateless ECDSA.

Coverage basis: No stateful signatures in use.

Implementation score: 1 · Evidence confidence: High

Issue classification: none · Score treatment: not applicable

This subfactor is N/A for the current classical-only implementation. It would become applicable if stateful PQ signatures were adopted in a future migration.

Algorithm & Implementation Assurance

Performance and resource-impact analysis

Claim: No PQ performance or resource-impact analysis exists. No assessment of how PQC signature sizes, verification costs, or key sizes would affect Arbitrum gas costs, block space, or user experience for RAIN transactions.

Coverage basis: No performance analysis performed.

Implementation score: 0 · Evidence confidence: High

Issue classification: assurance-only caveat · Score treatment: score-reducing

Assurance: Per the Note-Only Caveat Rule (Section 7.4), a missing formal performance benchmark is normally note-only unless resource constraints prevent safe use of PQ/hybrid paths. Here, no PQ path exists at all, so there are no resource constraints to evaluate. Score is 0.00 because no PQ implementation exists, not because the benchmark is absent.

If a PQ implementation existed but lacked a performance benchmark, this subfactor would be scored on the implementation and the missing benchmark would be a confidence/assurance note only.

Report metadata

Generation Details