# SEAL Chaos Team ## Running Protocol Drills *Slides: https://hackmd.io/@shield3/sealchaos* --- <!-- .slide: data-background="https://hackmd.io/_uploads/SJDWUsTZ6.png" --> --- ```graphviz digraph G { graph [bgcolor="#181818", fontcolor="white", fontname="Courier New", fontsize=18]; node [fontname="Courier New", fontsize=18, fontcolor="white"]; edge [fontname="Courier New", fontsize=12, color="white", fontcolor="white"]; node [shape=none]; // No shape for nodes to make them look like labels subgraph cluster_timeline { rank=same; "June '23" [fontcolor="lightgray"]; "July '23" [fontcolor="lightgray"]; "Aug '23" [fontcolor="lightgray"]; "Sep '23" [fontcolor="lightgray"]; "Oct '23" [fontcolor="lightgray"]; "Nov '23" [fontcolor="lightgray"]; "Dec '23" [fontcolor="lightgray"]; "June '23" -> "July '23" -> "Aug '23" -> "Sep '23" -> "Oct '23" -> "Nov '23" -> "Dec '23" [style=invis]; // Invisible edges to establish order } CompoundTabletop [shape=polygon, label="Compound Tabletop", style="filled", fillcolor="#00cd89"]; CompoundLive [shape=polygon, label="Compound Live", style="filled", fillcolor="#00cd89"]; YearnTabletop [shape=polygon, label="Yearn Tabletop", style="filled", fillcolor="#074bf8"]; YearnLive [shape=polygon, label="Yearn Live", style="filled", fillcolor="#074bf8"]; AaveTabletop [shape=polygon, label="Aave Tabletop", style="filled", fillcolor="#8968a3"]; AaveLive [shape=polygon, label="Aave Live (Planned)", style="filled", fillcolor="#8968a3", style=dashed]; "June '23" -> CompoundTabletop [dir=none]; "July '23" -> CompoundLive [dir=none]; "Aug '23" -> YearnTabletop [dir=none]; "Sep '23" -> YearnLive [dir=none]; "Oct '23" -> AaveTabletop [dir=none]; "Nov '23" -> AaveLive [dir=none]; } ``` --- ## Drill Phases 1. Reconnaissance: Review public code, documentation, and communications. 2. Tabletop simulation: Theoretical threat scenarios. 3. Live exercise: Real-time war room setup on a network fork. --- ## <font color="red">~~Incite Panic~~</font> ## <font color="green">**Practice Emergency Response**</font> --- ### Key Takeaways - Understanding the core dependencies of the protocol: What happens if they fail? - Assessing the adequacy of monitoring systems. - Evaluating team preparedness: Do they know the necessary steps? - Identifying who holds access and controls for rapid response. - Ensuring inter-protocol communication: Who contacts whom? --- ### Infrastructure  --- ### Technology Stack - Blockscout: Blockchain explorer. - Anvil node: For network forks. - RETH node: Mainnet backup. - Foundry: Scenario planning and configuration. - Apeworx scripts: Bot orchestration. - Forta nodes: Real-time monitoring. --- ### Blockscout Explorer  --- # <font color="#00cd89">**Compound**</font> ### $2.2B in collateral --- ### Scenario A price feed for a **collateral asset** in Compound V3 reports inconsistent values. **Impact:** Arbitrage bots exploit the discrepancy, accumulating bad debt for the protocol. --- ## Bot 1 - Market Dynamics  --- ## Bot 2 - Introduce the Chaos  --- ## Bot 3 - Exploit  --- ## Monitoring & Detection  --- ## Action Taken  --- # <font color="#074bf8">**Yearn**</font> ## $170M TVL Yearn's complexity required a different approach ---  --- ## Pick a strategy  --- ## GenLevCompV4  *Each Yearn strategy is equipped with an emergency card detailing experts, action steps, and stakeholders.* --- ## Scenario A **strategy** in Yearn allocates a significant fund volume to a protocol. **Consequence:** The protocol is under attack, necessitating fund retrieval to avert losses. --- ## Monitor  --- ## Monitor  --- ## Respond  --- ## Result  --- ## Observations * Protocol relationships with their 'auditors' extends far beyond initial engagements * Choose multisig guardians who have to take regular action on the protocol * Risk processes should always produce emergency procedures artifacts --- # Thank you | | | | | -------- | -------- | -------- | | Paradigm | Shield3 | Compound | | OpenZeppelin | Chainlink | A16Z | | Gauntlet | Forta | Yearn | | Apeworx | Aave | Blockscout | And all the SEAL Contributors!