Olympus DAO

Summary

Below is a preliminary list of features that Hypernative offers for Olympus DAO protocol to establish and ensure protocol security soundness, detect anomalies and malfunctions in 3rd-parties like Oracles, Bridges, and other tokens and protocols, and monitor off-chain and on-chain participants for suspicious behavior

The request is to approve a $81.6k budget expenditure paid in OHM for 12 months, approved and released quarterly by the DAO contributors.

About Hypernative

Hypernative (https://www.hypernative.io , https://twitter.com/HypernativeLabs, https://techcrunch.com/2023/01/30/crypto-security-startup-hypernative-raises-9m-to-help-prevent-web3-cyber-attacks/)

Is a well funded startup, created by top security professionals, which worked and sold companies to companies like IBM, Microsoft, Google, CyberArk and others and has a combined experience of 10’s of years in cybersecurity and machine learning/data analytics including team members with vast DeFi and blockchain experience.

During the time Hypernative is operational it already managed to warn first many protocols and projects about hacks and exploits before and during they happened (Including Olympus DAO / Bond last incident) and proved the technology can mitigate risks, including some mentions in post mortems and by protocols:

https://mirror.xyz/bonqdaoblog.eth/Mq4qgNieUi-ytphYzPU-lWY_E1J2F7STq_xlCR3qGsE

https://twitter.com/j2abro/status/1616830345743331333

https://twitter.com/cryptokevin2011/status/1615471767925186561

https://twitter.com/senamakel/status/1610953131252416513

https://twitter.com/jaypeggerz/status/1608395021031723010

https://twitter.com/0xGreg_/status/1608418111887396864

The platform is already used today by few L2 chains, protocols and other institutions on security and anomalies detection use cases.

Motivation

The overall motivation is to augment security and risk operations and help Olympus DAO team both with our team security and data expertise and with using the Hypernative platform.

It’s hard to keep track of all various different security risks and exposures in crypto and Web3, having a dedicated team and a real time platform to mitigate and detect these risks for the community, is of first priority in our vision.

The result of implementing this offer will be to provide real time detection of any security attack vector on Olympus DAO and its participants and prevent that threat by defining together with the community various preventive workflows. (Leveraging the Hypernative Platform)

A security and solidity expert contact in Hypernative which will provide its expertise and help regarding any security incidents, bug/vulnerabilities disclosures or processes.

Real time detection and warning the community/DAO of anomalies and risks in governance proposals, bridges, oracles, participants, phishing or scamming campaigns affecting OHM and its holders. (Leveraging the Hypernative Platform)

Proposal:

A. Protocol Security -

Reviewing security framework and response procedure, assigning a contact person for various events

a. Set standard operational procedure (response & contact points) on category of events and time-sensitivity for any security or operational case

b. Understand and create pre-incident measures to mitigate risk and react in time (pause contracts, limit/cap protocol, blacklist addresses, move funds to a safe/vault for emergency etc.)

(The selected measures will be voted by the DAO community before implementations)

c. Understand and create post-incident measures

Automatically notify Chainalysis to label attacker wallets and track stolen funds

Protocol Security Alerts

a. Leverage Hypernative zero-day detection modules to detect threat and alert in real time on security incidents related to or directed at Olympus DAO contracts

Incident Response

a. Identify root cause(s) and suggest remedies / repairs and communication

Security Operations Augmentation

a. Create a security team for Olympus DAO by receiving and reviewing security disclosures and helping investigate issues as they arise

B. Oracles, Bridges, and related Tokens -

Oracle Reliability

a. Offer:

Detect deviations between two updates of an oracle

Detect deviations between two updates on two different chains

Detect deviations between on-chain and off-chain prices

Detect a lack of updates and staleness

Assist in evaluation of  different oracle providers and share historical data

Bridge Security Monitoring

a. Offer:

Provide security alerts related to bridge security incidents and risks

Related Token Monitoring

a. Offer:

Monitor tokens dependent on or related to Olympus DAO for anomalies, market economic conditions, security, holdings concentration and supply changes (mints / burns)

C. Phishing and Scamming Detection -

On-chain detection

a. Offer:

Detect phishing campaigns targeted at OHM token holders and provide alerts to warn the community

Off-chain detection.  (* Roadmap item)

a. Offer:

Detect phishing and scamming campaigns on the web

Detect phishing campaigns on social media (Discord, Telegram, Twitter) and alert related parties

D. On-Chain Governance -

Monitor Governance Decisions

a. Offer:

Monitor OlympusDAO governance proposals on-chain and apply Hypernative models to detect suspicious proposals

Simulate governance proposals and add relevant automated testing of invariants/conditions for every proposal

Monitor proposers history and risk parameters

Monitor Governance token holders

a. Offer:

Monitor government token transfers

Alert on governance token concentration

E. Participants Monitoring  -

Monitor suspicious users

a. Offer:

Monitor large transfers or movements of funds from participants in the protocol

Monitor suspicious or illicit activity, or illicit funds holdings for protocol participants

Monitor blacklisted addresses

a. Offer:

Monitor addresses from OFAC lists or that were part of a hack/exploit/fraud

F. Protocol Operations Monitoring -

Monitor protocol treasury and wallets

a. Offer:

Monitor large transfers or movements of funds from protocol treasury

Monitor protocol multi sig wallets for anomalies and suspicious transactions

Pre transaction API that can simulate a transaction outcome before applying it on-chain

Monitor protocol defined parameters / invariants

a. Offer:

Monitor specific invariants as specified by OlympusDAO team

The request is to approve a $81.6k budget expenditure paid in OHM for 12 months, approved and released quarterly by the DAO contributors.