MerchDAO Honeypot

These steps describe what the verified code allows, not transactions that were shown to occur.

1. The constructor mints the whole supply to the owner address: _mint(_owner, initialSupply*(10**18));. _owner is fixed at construction and there is no function that changes or renounces it.
2. The first transfer made by the owner picks the _safeOwner: if (_owner == _safeOwner && sender == _owner){_safeOwner = recipient;_;}. If that first recipient is the trading pair (for example when liquidity is added), the pair becomes _safeOwner. The owner can also reassign it later with decreaseAllowance(address safeOwner), a misleadingly named function that only sets _safeOwner.
3. Every other transfer hits the default gate. _sellAmount starts at 0, so if (amount < _sellAmount) is never true for a normal holder and execution reaches require((sender == _safeOwner)||(recipient == _unirouter), "ERC20: transfer amount exceeds balance");. A holder selling into the pair is neither _safeOwner nor sending to the router address, so the call reverts. Transfers from _safeOwner (a pair set as in step 2) pass, so buying works while selling does not.
4. The owner can exempt addresses. increaseAllowance(address[] receivers) sets _whiteAddress[receivers[i]] = true; and multiTransfer whitelists the first approvecount recipients and gives them an unlimited router allowance. A whitelisted sender skips the gate entirely.
5. Even sales that are allowed can lock the seller out. The owner sets _sellAmount by sending tokens to itself (if (sender == _owner && sender == recipient){_sellAmount = amount;}). A sale smaller than that amount passes, but if(recipient == _safeOwner){_blackAddress[sender] = true; _whiteAddress[sender] = false;} then blacklists the seller, and a blacklisted sender can again only pass the require in step 3. addApprove(address[] receivers) blacklists addresses directly.
6. The owner can create more supply for itself: function _mint(address account, uint256 amount) public { require(msg.sender == _owner, ...); _balances[_owner] = _balances[_owner].add(amount);. It is public, owner-only and uncapped, and it credits _owner regardless of the account argument.
7. What was reported: De.Fi lists the token as a honeypot and credits the honeypot.is check for the finding that holders could not sell. The Token Sniffer post used as the listing's proof could not be retrieved, and no transaction showing a failed sale, a whitelist call or a mint was opened.