Multi-Oracle Validation
The first layer of defence compares price data from an external oracle (Switchboard) against the on-chain pool price. This ensures that external feeds are consistent with observed market conditions in Full Sail. This check protects against oracle compromise scenarios where external data could be spoofed or manipulated.Statistical Anomaly Detection
The second layer of defence analyzes the protocol’s own price history. Each new price is measured against the last 50–70 updates, with deviation quantified through a Z-score. This method captures anomalies that may not result from malicious activity but from technical failures, network glitches, or rare market dislocations. By relying on historical context, the protocol avoids accepting extreme outliers as valid prices.Circuit Breaker
The final layer is the circuit breaker system, which aggregates the results of both checks and determines the protocol’s response. It provides three escalating protection levels:- Warning: Log and notify without halting updates.
- Critical: Block the price update and prevent compromised data from entering the system.
- Emergency: Pause all emissions until the issue is resolved.
Real Scenario Example
Suppose an attacker compromises the external oracle and submits a manipulated ETH price of $5000 while the pool price remains $2800. When the protection system performs its checks:- Multi-Oracle Validation detects a large discrepancy between the oracle feed and the pool price.
- Statistical Analysis compares the new price against recent history and identifies it as an extreme anomaly.
- Circuit Breaker aggregates these results, classifies the event as critical, and immediately pauses emissions.
Benefits
- Fast response: Threats are identified and acted upon within seconds.
- Robust detection: Redundant checks (oracle vs pool + statistical analysis) reduce false positives.
- Transparency: Each layer has clearly defined thresholds and actions.
- Modularity: Security logic is isolated, preventing disruption to the main protocol.
- Upgradability: The system can be updated or rolled back independently.