EGP-36: DELV Payment for Milestone 2 of EGP-30

EGP#: 36

Title: Payment for Milestone 2 of EGP-30 (Security & Incident Monitoring Services)

Author(s): @DELV

Type: Protocol Proposal

Status: Proposed

Date Proposed: 2024-09-27

Date Ratified: <yyyy-mm-dd>

References

• EGP-30: Hyperdrive Ethereum Mainnet Launch & Security Monitoring and Incident Management Services

Sentence Summary

EGP-36 proposes the details for the Element DAO paying DELV as a service provider for Milestone 2 of EPG-30.

Paragraph Summary

This proposal includes the payment details for the following service provisions as described in Milestone 2, as referenced in EGP-30 (and seen below):

• 90 Days Completed of Security Monitoring and Incident Management Following Proposal Effective Date

  1. On behalf of the Element DAO, DELV will monitor, for a 90-day period, the health and safety of the Hyperdrive deployments. This includes, but is not limited to the following areas:

     1. Yield Source Hacks

     2. Hyperdrive Trading Vulnerabilities

     3. Hyperdrive Non-Trading Vulnerabilities

     4. Negative Interest Events (e.g., slashing events)

     5. Checkpoint minting failures

     6. Sunsetting Pools / Pausing Pools

Motivation

Now we’re approaching the 90-day mark (Oct 1st, 2024) of these services for Element DAO, this proposal is being put forward to receive the Milestone 2 payment from EGP-30.

Specification

Completion of Milestone 2: Security Monitoring and Incident Management (90 days)

• Service began on July 3rd, 2024 and ends on Oct 1st, 2024.

• DELV has monitored all the deployed Hyperdrive Element DAO pools to ensure that certain invariants implying solvency are always true. These invariants are checked every transaction, or if no transactions occurred then once a day.

• We continuously ran a series of fuzz tests on a fork of mainnet & L2 chains whenever a transaction occurred to help minimize risks of the pool entering a dangerous state. These tests explored the state resulting from a sequence of random trades made by trading bots starting from the current forked state. After each random trade the invariants are checked to ensure pool health.

• We monitored all pools to ensure checkpoints were minted when necessary.

• We automated delivering incident reports to a dedicated security team that addressed any potential concerns promptly, where the severity dictated the incidence response time. All critical issues were identified and investigated within hours of notification.

Milestone 2 Payment Details:

• 90 Days Completed of Security Monitoring and Incident Management: 2,000,000 ELFI

• All payments payable in ELFI to DELV’s Ethereum Wallet: 0xF6094C3A380AD6161Fb8240F3043392A0E427CAC

• ACTION NEEDED FROM Element DAO: As a part of the security monitoring and incident management services, DELV is an admin for pausing pools in case there is a threat to the underlying yield source or an interest issue. With the conclusion of this service provision term, the Element DAO (the GSC or an Element DAO member) will need to propose removing DELV as one of the defaultPausers.

Proposed Code

{

  "proposalId": 20,

  "votingVaults": [

    "0x02Bd4A3b1b95b01F2Aa61655415A5d3EAAcaafdD"

  ],

  "extraVaultData": [

    "0x00"

  ],

  "targets": [

    "0x81758f3361A769016eae4844072FA6d7f828a651"

  ],

  "callDatas": [

    "0x88b49b8335f0e25927b56f157efdb21d02bf672a49f4d9791d38efc15f1dafe958cd87a4"

  ],

  "proposalHash": "0xaeb689837d2c78dc746d9dc9be401beab8836e8a9948b0a435e775e90005a149",

  "targetsTimeLock": [

    "0x82eF450FB7f06E3294F2f19ed1713b255Af0f541"

  ],

  "calldatasTimeLock": [

    "0x8522d1b20000000000000000000000005c6d51ecba4d8e4f20373e3ce96a62342b125d6d00000000000000000000000000000000000000000001a784379d99db42000000000000000000000000000000f6094c3a380ad6161fb8240f3043392a0e427cac"

  ],

  "callHashTimelock": "0x35f0e25927b56f157efdb21d02bf672a49f4d9791d38efc15f1dafe958cd87a4",

  "lastCall": 20943656,

  "ballot": "0"

}

Notes:

• The lastCall will be created when the proposal is officially put onchain and will be set for 14 days from creation date.

• The proposalId is currently set to 20 but this may need to be updated to 21 or 22 prior to being put onchain due to other proposals going through governance at the moment.

Next Steps (Voting Outcome Summary)

1. This proposal is currently a Draft.

   • We welcome all questions and comments over the next week, but please be advised that DELV Team Members will not be able to provide comments beyond formatting and technical commentary.

2. After one week and once the feedback has been addressed, this will move to be officially Proposed.

3. Once Proposed, there will be a 1 week review period before it moves to the next stage, Off-Chain Poll (Snapshot). [Note that DELV will put this proposal Onchain only if the quorum necessary to move this proposal forward passes by more than the number of votes used by DELV to initiate the proposal. In other words, DELV voting authority will not be used to ratify this proposal, either to meet quorum requirements or in determination of a majority.]

4. On Snapshot, the governance community will vote for:

   • Yes: You agree that EGP-36 should be accepted.

   • No: You disagree that EGP-36 should be accepted.

   • Abstain: You formally decline to vote either YES or NO.

5. If this proposal passes the Off-Chain Poll, it will proceed to the On-Chain Vote, where the vote options will remain the same as on Snapshot.

6. If this proposal passes, the proposal will officially be Accepted and the code will proceed to the Execution stage where DELV will receive their payment for Milestone 2 of EGP-30.

7. IMPORTANT NOTE/ACTION NEEDED: The GSC or a member of the Element DAO will need to propose removing DELV as one of the defaultPausers.

Important note: DELV will provide logistical and technical support for putting the proposals Off-chain (poll) and On-chain (vote), but neither DELV nor DELV Team Members will participate in the poll or vote. Furthermore, DELV engineers will provide technical comments only, when clarity is needed; they will not provide any statements on the wisdom or appropriateness of the proposal. As noted above, DELV’s placement of this proposal to an onchain vote will only occur if the proposal is passed by more than the number of votes used by DELV to initiate the proposal. In other words, DELV’s voting authority will not be used to ratify this proposal, including for quorum purposes or for the determination of a majority.

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