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# SEAL Chaos Team

## Running Protocol Drills

*Slides: https://hackmd.io/@shield3/sealchaos*

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## 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.

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## <font color="red">~~Incite Panic~~</font>

## <font color="green">**Practice Emergency Response**</font>

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### 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?

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### Infrastructure


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### 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.

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### Blockscout Explorer


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# <font color="#00cd89">**Compound**</font>

### $2.2B in collateral

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### 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.

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## Bot 1 - Market Dynamics


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## Bot 2 - Introduce the Chaos


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## Bot 3 - Exploit


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## Monitoring & Detection


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## Action Taken


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# <font color="#074bf8">**Yearn**</font>

## $170M TVL
Yearn's complexity required a different approach

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## Pick a strategy


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## GenLevCompV4


*Each Yearn strategy is equipped with an emergency card detailing experts, action steps, and stakeholders.*

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## 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.

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## Monitor


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## Monitor


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## Respond


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## Result


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## 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

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# Thank you

| | | |
| -------- | -------- | -------- |
| Paradigm | Shield3 | Compound |
| OpenZeppelin | Chainlink | A16Z |
| Gauntlet | Forta | Yearn |
| Apeworx | Aave | Blockscout |

And all the SEAL Contributors!