The security of smart contracts can be enhanced not just with auditors and bounty platforms, but also by adding ✨ Circuit Breaker as extra security layer ✨.
Find out more about Circuit Breakers and security projects for on-chain smart contracts in the thread below. 🧵⬇️
Why Circuit Breakers for Smart Contracts?
Hacks in DeFi usually happens immediately (hacker transfer all funds in 1 tx).
When team puts thru recovery plan with governance, it is too late.
“DeFi Protocols won't have ~30% daily TVL drawdowns unless hacked” (by @MeirBank)
Zerem: DeFi Circuit Breaker by @high_byte
Zerem secures protocols by thresholding the transfer of large funds in temporary vault, to secure the protocol if immediate failure happens.
https://twitter.com/high_byte/status/1579631130621673474
ERC-7265: Circuit Breaker by @MeirBank, @Diyahir, @tcb_00, @real_philogy
ERC-7265 standardizes a circuit breaker protecting onchain protocol, with highly customized rate limit parameters per asset.
https://twitter.com/MeirBank/status/1675851684386570240
Besides the above purely onchain circuit breakers, we also see some novel implementations leveraging the technology of restaking by @EigenLayer or ZKP. 👀
ODIN: Pause dapps before malicious tx is executed by @blocksek, @zk_asv
ODIN is a security service that uses EigenLayer to bond block builders to follow the rules of ODIN.
https://twitter.com/blocksek/status/1764483893846052996
ODIN Deep Dive
Block Builders Bonded? > Malicious ones will be slashed based on restaking, thus they are economically aligned.
What Rules? > A property of system that should always hold. Eg: sum of lend txs - sum of borrow txs = tokens left in contract
https://github.com/anupsv/odin
HoneyPause: Proactive defense for protocols by @merklejerk
HoneyPause combines onchain bounty with circuit breaker, with the workflow of PROVE an exploit, PAUSE the protocol, Get PAID a bounty.
https://twitter.com/merklejerk/status/1767218431865069979
ODESEC: Onchain Database of Emergency Security Event Contact by @SecurFi
ODESEC takes security layer to another level. ODESEC utilizes zk-proof of exploit for whitehats to blow whistle for alert, and ZK SSL for identifying the hacked project.
https://twitter.com/SecurFi/status/1785671347152273554
That's all for now on the topic of Circuit Breakers in the world of DeFi.
Safeguarding your smart contracts is not just about auditing, but also about having the right security layers in place.
Stay SAFU!