Risk Factors

Several attack vectors have been mitigated for the long-term sustainability of the protocol across different core components, which can be summarized as:

Front-running

As one of the oldest and still most common attack vectors for DeFi in general, front-running has been mitigated by using a two-step process for all actions corresponding to the user’s intent. For any user’s intent, there will be a request, then validation, and finally, there will be a response in the form of rejection or execution.

Front-running, a persistent threat in Decentralized Finance, has been effectively addressed through the adoption of a two-step process for all user actions. This approach ensures that each user's intent undergoes a thorough validation process, starting with a request and resulting in a response of either rejection or execution of the action.

The protocol implements a two-step process for all user actions where each user’s intent undergoes an adaptive validation process

Sequencer Down or Blockchain Congestion

While this is not common, the on-chain contracts and off-chain infrastructure are purposefully designed to handle the cases where such events occur allowing for the operation of the protocol to adapt as needed.

Once the blocks are being produced, the prices in the pendingQueue will be reviewed and validated before any existing or previous orders are executed by the Execution Engine.

Malicious Assets or Markets Parameters

If a bad actor requests asset whitelisting, creation of a market, modification of a market, or other asset/market related parameters, the Asset Manager will handle proper validation before any request is passed onto the Execution Engine. The Execution Engine will run its own validation checks to ensure that no malicious actions disguised as requests are executed. In the early stages of the protocol, several additional internal checks will be followed until the protocol is handed over to the DAO for decision-making.

Maximum and Oracle Extractable Value

Several validation logics have been implemented on the on-chain and off-chain infrastructure to ensure maximum possible security. As previously shared, our two-step process reduces the chances of MEV and OEV attacks to almost zero.