We are pleased to announce the successful completion of a project for SmartProxyMonitor, a pioneering tool designed to monitor smart contracts using proxy patterns across various blockchain networks.
About SmartProxyMonitor
SmartProxyMonitor is dedicated to providing detailed insights and continuous monitoring of smart contracts implemented using the proxy pattern. This tool aims to identify vulnerable smart contract implementations and to alert investors about alterations to underlying code that might result in funds loss.
Why Proxy Patterns?
Flexibility
Proxy patterns are essential for maintaining upgradability in smart contracts without altering the contract address to adapt to new requirements and technological advancements. By separating contract logic from data, these patterns enable developers to update and enhance functionalities seamlessly.
Adoption
Most current DeFi smart contracts use the proxy pattern. This widespread adoption is a serious factor to consider when investing funds in these protocols. At any time, funds have exposure to risk events due to potential vulnerabilities or changes in the underlying smart contract implementations. Continuous monitoring and assessment are essential to mitigate these risks and protect investments.
Security
The proxy pattern leverages a two-contract system—proxy and implementation contracts—to isolate logic and data. This separation enhances security by allowing for timely updates and mitigating risks associated with outdated code. However, improper implementation can introduce vulnerabilities, making continuous monitoring crucial.
Project Highlights
- Smart contract analysis: The tool performs an in-depth analysis of smart contracts on the EVM code level to detect proxy pattern implementations. This ensures an understanding of the contract’s architecture and potential vulnerabilities.
- Continuous monitoring: Once a proxy pattern implementation is detected, SmartProxyMonitor continuously tracks the smart contract for any changes. Our system can detect implementation changes in advance, before they are committed to the blockchain, providing timely alerts.
- Scoring algorithm: The scoring algorithm assesses the detected proxy pattern implementations based on gathered information. This algorithm assigns a reliability and security mark to each smart contract, helping users evaluate their trustworthiness.
Key Development Steps
- Initial planning: Understanding proxy pattern types, their vulnerabilities, and historical hacks. This involved analyzing different proxy patterns and studying past smart contract exploits to identify common attack vectors and weaknesses.
- Design and architecture: Creating a comprehensive analytics tool for parsing EVM codes of smart contracts. We designed a scalable solution capable of monitoring thousands of transactions per minute to ensure real-time analysis and detection.
- Development: Building a scalable, cloud-agnostic SmartProxyMonitor tool leveraging Kubernetes, ready for deployment across our clients’ internal systems to augment their capabilities. This approach ensures flexibility and robustness in various operating environments.
- Testing: Conducting rigorous testing, including backtesting to check historical event detection. We ensured that SmartProxyMonitor accurately identified past vulnerabilities and changes to validate its effectiveness and reliability.
- Deployment: Incorporating SmartProxyMonitor into our internal security platform and several deployments to our clients’ internal systems, extending their capabilities and providing valuable input to quant algorithms.
Looking to Innovate? 💡
At Chainkraft, we specialize in blockchain development and security services. Whether you need to build a new DeFi application or secure your existing blockchain infrastructure, our team is here to help.
