Death spirals
The most common, and most fatal economic security risk. Completely obvious in retrospect, almost never caught before launch.
Technical security is a lack of bugs in the code.
Economic security is a lack of bugs in the incentives.
Higher
The most common, and most fatal economic security risk. Completely obvious in retrospect, almost never caught before launch.
Most of the big hacks of 2023 were exploited system design flaws – unintended and unknown to the team.
Many protocols are tolerant to the wrong range of possible parameters, leaving them vulnerable to collapse in the right circumstances.
Some protocols are perfect – except in a unique combination of circumstances. It’s important to control for them before they happen.
Consequences vary from users losing interest in the protocol to protocol failure when the token price bleeds to zero.
When supply exceeds demand, sell pressure can overwhelm buy pressure, leading to an often sharp decrease in token price.
Lower
We evaluate the economic security of your protocol, checking for edge cases, externalities, and possible exploits.
Not all edge cases are caught through protocol mapping. We model your protocol in CADCAD to find edge cases programatically.
When threats are found, it's on you to mitigate them - let it be on us. We redesign your protocol to remediate any problems we find.
Document and visualize your protocol to users and investors so it is intuitively obvious to the most casual observer
Document and visualize your protocol to users and investors so it is intuitively obvious to the most casual observer
Document and visualize your protocol to users and investors so it is intuitively obvious to the most casual observer
Economic security risks fall into low, medium, and high risk classifications, depending on several factors. Specific risks include death spirals from nested dependencies, unmatched sell pressure from inflation or unanticipated supply shocks.
Technical security is a lack of bugs in the code; economic security is a lack of bugs in the incentives. We identify and solve misalignments of incentives to make sure there are no economic security exploits possible to your protocol.
We start by identifying all of the agents in your protocol and cataloging their incentives. Then we simulate all of their likely actions according to the design of your protocol.
Once threats are identified, we find ways to solve the problem. Risk mitigation can be as simple as adding a mechanism, or as complex as redesigning the protocol. Either way, our team can handle the strategy and implementation.
Economic security risks fall into low, medium, and high risk classifications, depending on several factors. Specific risks include death spirals from nested dependencies, unmatched sell pressure from inflation or unanticipated supply shocks.
Technical security is a lack of bugs in the code; economic security is a lack of bugs in the incentives. We identify and solve misalignments of incentives to make sure there are no economic security exploits possible to your protocol.
We start by identifying all of the agents in your protocol and cataloging their incentives. Then we simulate all of their likely actions according to the design of your protocol.
Once threats are identified, we find ways to solve the problem. Risk mitigation can be as simple as adding a mechanism, or as complex as redesigning the protocol. Either way, our team can handle the strategy and implementation.
