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Use Cases

There are infinite possibilities!

  • Infrastructure as Code: Define your incident response infrastructure as solidity code and deploy it with drosera apply.
  • Time-series analysis: Drosera Traps can access historical state data within solidity code just by querying an array data[block_3,block_2,block_1].
  • Automated Response: Drosera Traps can be configured to execute any smart contract function within the EVM and specify inputs performAction() or performAction(anyData).

Below are some examples of how Drosera can be used for various DeFi use cases.

Lending​

Automated Liquidation Responses: Detect if a user’s collateralization ratio drops below a critical level and initiate an automated response to either notify the user or trigger partial liquidation to avoid full liquidation. Monitor getInterestRate, getUtilization, and collateralBalanceOf over time to foresee potential mass liquidations.

Liquidation and Collateralization Safety Nets: Ensure that collateralization ratios and liquidation patterns are stable and fair, protecting against erroneous liquidations or malicious actors trying to exploit the liquidation system.

Decentralized Exchanges​

Analyzing volume, liquidity, pricing, pool info: Perform any action in response to detecting volumes, liquidity, and pricing changes.

L2/Rollups​

Monitoring state transitions, fraud proofs, and dispute resolution: Monitor pause statuses to automatically notify users or halt interactions in the case where an L2 bridge is paused. Track the frequency of failedMessages and activate alerts or even halt certain operations if a threshold of failed cross-domain messages is reached.

Yield Farms and Staking​

Reward Draining Mitigation: Watch the rewardRate and total rewards over time to detect abnormal drains and potentially halt reward distributions or inform governance. Monitor deposit, escrow, and lockIncentive data to avoid smart contract bugs or exploits related to staking and unstaking mechanisms.

Stake and Yield Retrieval Stability: Watch the balance and approval functions, especially regarding high-stake accounts, ensuring that stakers can retrieve their yields and principal smoothly, with no smart contract hitches.

Oracles​

Data Integrity Checks: Perform time series analysis on oracle data to ascertain data consistency and trigger alarms in cases of unusual data fluctuations which might indicate oracle manipulation or errors.

Guard Against Price Manipulation: Monitor historical price feeds for sudden drastic changes, which may imply some risk, and enact protective measures.

Privacy Solutions​

Analysis on mixers: Monitor the mixer’s state and user activity to detect potential malicious activities.

Insurance Protocols​

Claim Anomaly Detection: Continuously analyze claim data to identify patterns of fraudulent claims or unexpected spikes in claim requests.

Assessment and Voting Anomalies: Analyze patterns in votes and rewards to identify malicious actors or manipulation in assessment voting.

Collateralized Debt Positions​

Collateral Crisis Prevention: Monitor totalDebt and positionCollateral to predict and prevent potential collateral crises and safeguard against deleveraging spirals.

Cross-Chain Bridges​

Finality and Transfer Anomalies: Continuously verify getFinality and isTransferCompleted to ensure asset security and bridge functionality, activating alerts, or partial functionality suspensions on anomalies.

Staked Assets: Monitor staked assets and collateralization ratios to mitigate bridge failures or asset losses.

Bug Bounty Platforms​

Bounty Drain Protection: Monitor bountyAmount and the status of bounties to detect unexpected drains or exploit attempts. Supervise approvedSubmissions and rejectedSubmissions for unusual activities, which might indicate collusion or fraudulent behaviors.

Algorithmic Stablecoins​

Stability Mechanism Checks: Continuously evaluate and analyze token minting, burning, and collateralization rates for any signs that might jeopardize the peg stability.

Regulatory Compliance​

Compliance And Regulatory Adherence: Ensure that minting and redemption of tokens follow regulatory and compliance standards by monitoring state and ensuring they adhere to predefined rules. Custom data regarding jurisdictional regulatory requirements (like KYC/AML) can be monitored. When deviations or potential violations are detected, Drosera could enact responses, like freezing functionality or alerting relevant parties, to ensure protocols stay compliant.

Pausable Functionality​

Auto-Halt in Case of Unusual Activity: Drosera detects abnormal behavior like rapid treasury drains, excessive minting of tokens, or sudden spikes in governance proposals and automatically triggers the isPaused function to halt activity, protecting users and assets.

Protocol Configs​

Config Change Alerts: Analyze and alert governance or users when vital config variables and constants change unexpectedly, which might impact tokenomics, protocol security, or user experience.

Governance Mechanisms​

Mitigating Governance Attacks: Analyze proposalInfo and voting patterns to safeguard against malicious governance attacks or unintended voting manipulations. Analyze token movement, approvals, and voting patterns (votes and proposalInfo) to guard against malicious governance takeovers or Sybil attacks.

Ensuring Healthy Governance: Analyze participation and proposal outcomes, ensuring they align with a healthy, decentralized governance model and alert in case of centralized voting power emergence.

Multisigs​

Multisig Operation Alerts: Trigger alerts or potential pauses if there’s a mismatch between votes and threshold for multi-signature activities, ensuring all operations adhere to organizational and security protocols.

Unauthorized Activity Monitoring: Observe activity to catch and react to unauthorized or unusual transactions that could indicate a compromise.

Treasury Management​

Automated Treasury Health Checks: Continuously check the balance and expenditures from the protocol's treasury, ensuring financial stability and alerting if unusual or unauthorized transactions occur.

Token Management​

Detect and Mitigate Token Minting Abuses: Observe totalSupply, getBalance, and owners data to prevent unauthorized token minting or transfer events, ensuring tokenomics remain unharmed.

Approval and Token Spending Anomalies: Check approval functions and movement of tokens to ensure no unexpected, unauthorized, or fraudulent activities are occurring related to token spending.

Adaptive Fee Mechanism for Scalability and Affordability​

Dynamic Fee Adjustments: Using Drosera to monitor network congestion, gas prices, and protocol usage to dynamically adjust fees or yield returns to maintain a balance between protocol profitability and user incentivization during different network conditions.

Automated Hedge Strategies​

Market Impact Shields: For yield protocols or DAO treasuries, employ Drosera to watch market conditions and automatically execute hedge strategies (like moving to stable assets) during negative market shocks, preserving value while maintaining decentralized governance.

Smart Contract Upgradability and Migration Helper​

Contract Evolution Monitoring: Observing and assisting in smart contract upgrades or migrations. If data from a new contract version does not align with expected states (perhaps due to a bug or misconfiguration), Drosera can halt processes and alert developers before wider impact occurs.

Inter-Protocol Synergy Checker​

Protocol Interaction Observing: Observe interactions between different protocols to detect early signs of potential issues in composability or unexpected behavior due to updates/changes in one of the interconnected protocols, securing the broader defi ecosystem.

Defi Product Insurance Parametric Triggers​

Parametric Insurance Activator: Drosera could execute automatic claim processing or payout triggers in decentralized insurance protocols by verifying on-chain data points that indicate a claim condition (such as smart contract failure or DEX price impact) has been met.

Liquid Restaking​

Mitigating Depegs: Analyze the state of liquid restaking mechanisms to prevent depegs or sudden price fluctuations due to ecosystem events.

Handling Restaking Failures: Observe restaking mechanisms to ensure that restaking failures are detected and resolved quickly, preventing loss of rewards or staking assets.

Integrating with other protocols​

Anyone can use Drosera: Other protocols and projects can enhance their product with one or many Drosera Traps.

Next Block Response​

Priority Transactions: Drosera can boost response transaction priority in order to ensure that critical actions are executed in the next block.

On-the-fly Infrastructure Updates​

Automated Infrastructure Updates: Drosera can be used to automatically update infrastructure configurations based on on-chain data, ensuring that the infrastructure is always up-to-date and optimized. Drosera Traps themselves can also be updated on-the-fly.

Pushing Off-chain Data to On-chain​

Protocol Data Push: Protocols can push data on-chain by simple creating contracts that take data from an admin or multisig. A Trap can be built to anaylze the data from the contract and take action depending on its implementation.

Protocol Dependency Risk Analysis​

Dependency Risk Mitigation: Drosera can be used to analyze dependencies and alert/respond when a dependency is at risk of failure or has failed.

And many more!

Do you have a use case in mind? Let us know!