Greetings, dear readers!

Since our previous review digest, the Web3 ecosystem has undergone a serious paradigm shift.

So today, in the next digest piece, we’ll speak about essentially the most recent news, the way it affects (and can affect) industry and our project, and, after all, we’ll steadily add more features to our Pessimistic Spotter on-chain monitoring & defense service!

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As you most likely already know, the entire DeFi industry was very painfully hit by the recent hack of the Euler protocol. The incident left the protocol devastated and led to a chain of injury to the whole Lego-based DeFi ecosystem…

PoC:

Despite the incontrovertible fact that just one of the 6 audits covered vulnerable code in a method or one other, the event solid a shadow over the auditing business and and compelled the general public to lift vital questions:

We don’t are inclined to underestimate this threat and at the identical time need to say that this just proves once more the importance of monitoring — as one other layer of security.

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You might be wondering if monitoring is helpful for contracts that lack upgradeability or . Only a would have made a difference in this case.

The explanation why you shouldn’t depend on the is explained below, but first, we wish to confess that we now have already discussed how our Spotter addresses and overcomes it:

Some may say that such systems will likely be inconvenient to make use of and can raise questions amongst users, but we now have a unique vision, which is that it’s price normalizing such a process.

As sites use DDoS protection, so we are able to use our system in the identical way— and it will possibly pause/halt (by implementing circuit breakers/timed withdrawals) the protocol for, let’s say, 20 minutes, until the issue is solved, or/and announce/alert/halt it immediately.

Even before the attack hit the protocol, it is usually possible to get in contact with the and negotiate with them for a , in addition to to supply them a special contract to make the money return easier and an escrow contract, if desired.

To counter such damaging attacks in future, we’re going to collaborate with Flashbots & RPC providers to get extra seconds for our clients!

We were capable of detect this certain attack on Euler Finance before the attack actually happened:

More proofs:

We also need to admit that we spotted an attack faster than PeckShield & Certik Alerts:

Forta has also detected this attack. See the tx here. Take a look at this very-special bot as well!

Our Spotter system is designed to reply in , so we’re backtesting it on a dataset of hacks — and the outcomes are pretty great, as we are going to reveal in the next articles…

We also detected an attack on ParaSpace_NFT:

Currently our does frontrun/backrun (for instance, via using this or this MEV bot) malicious transactions, but BlockSecTeam was able to rescue 2900 ETH (more here) with using a MEV bot and their Iron Dome system.

The attacker left this message after their attack failed and so they lost quite a lot of money on gas 🙂 :

We also plan to launch an attack prevention system soon!

What can we state of course is that Spotter really works. It predicts hacks and might save your protocol and money from big trouble at some point!

For the reason that topic of energetic protection has develop into very fashionable, we now have conducted market research and identified the next projects that exist in the mean time!

Here is the technology I described in 2020, and it is comparable to the implementation of roughly the identical web2-origin thing but in blockchain.

In my view, these are worthy representatives:

We aim to be compatible with other tools and services, and we prefer to collaborate somewhat compete because we consider that multiple monitoring solutions will complement each other, leading to greater ecosystem security:

As we finalize our project, we’re communicating with various interested parties, as we’re honest with you, we are able to now state the next:

• is the highest tier accelerator, and we’re thrilled to announce that we’ve been invited to their first ever interview!
• We’re blissful to inform you that we’ve also just been invited to the first interview with , startup accelerator from , which recently announced the plans to speculate into the event of Web3 ecosystem!

Within the near future, we intend to pitch at a big variety of conferences and switch on protection for a few our cordial DeFi protocols & web3 projects:

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You’ll be able to subscribe to our blog to ensure you don’t miss any of the regular news and updates we plan to publish on the project in a special digest!

Moreover, Spotter now has a Twitter account, so follow it there as well: twitter.com/sadspotter

In the next articles we are going to steadily expand the functionality of our service and supply a possibility to check it in your system. We’ll let you understand the discharge date soon,