- Changed pytest calls to use `venv/bin/python -m pytest` with explicit config - Added `--rootdir "$PWD"` and `--import-mode=importlib` for consistent imports - Fixed PYTHONPATH to use absolute paths with $PWD prefix - Added smart contract security scanning for Solidity files - Added Circom circuit security checks for ZK proof circuits - Added ZK proof implementation security validation - Added contracts/** to security scanning workflow
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Economic Security Analysis
This document analyzes the token economics and potential economic attack vectors in the AITBC platform.
Token Overview
Token Distribution
- Total supply: [TBD]
- Initial distribution: [TBD]
- Vesting schedules: [TBD]
- Token utility: [TBD]
Token Mechanics
- Token standard: ERC-20
- Staking mechanism: [TBD]
- Reward distribution: [TBD]
- Governance rights: [TBD]
Economic Attack Vectors
1. Pump and Dump
Description: Manipulate token price through coordinated buying and selling.
Impact:
- Financial loss for legitimate users
- Loss of confidence in platform
- Regulatory scrutiny
Mitigation:
- Liquidity locks on team tokens
- Vesting periods for early adopters
- Transparent tokenomics
- Monitoring for unusual trading patterns
2. Front-running
Description: Attacker sees pending transactions and submits competing transactions with higher gas.
Impact:
- MEV extraction
- Transaction manipulation
- Slippage for users
Mitigation:
- Commit-reveal schemes for sensitive operations
- Batch auctions
- Time-based ordering
- Private mempool (if applicable)
3. Sybil Attacks
Description: Attacker creates multiple fake identities to gain disproportionate influence.
Impact:
- Manipulate consensus
- Earn disproportionate rewards
- Influence governance
Mitigation:
- Identity verification (where applicable)
- Staking requirements to participate
- Reputation systems
- Rate limiting per identity
4. Validator Collusion
Description: Multiple validators collude to manipulate the network.
Impact:
- Block censorship
- Transaction reordering
- Double-spending attempts
Mitigation:
- Decentralized validator set
- Slashing conditions for misbehavior
- Random leader selection
- Economic disincentives for collusion
5. Governance Attacks
Description: Manipulate governance decisions for malicious purposes.
Impact:
- Protocol changes benefiting attacker
- Drain treasury
- Disable security features
Mitigation:
- Time locks on governance changes
- Quorum requirements
- Delegation limits
- Emergency pause by trusted guardians
6. Oracle Manipulation
Description: Manipulate external data sources (e.g., GPU prices, exchange rates).
Impact:
- Incorrect pricing in marketplace
- Unfair reward distribution
- Financial losses
Mitigation:
- Multiple oracle sources
- Oracle aggregation
- Time-weighted averages
- Dispute mechanisms
7. Liquidity Attacks
Description: Manipulate liquidity pools to drain funds.
Impact:
- Loss of liquidity
- Price manipulation
- Financial losses
Mitigation:
- Liquidity provider protections
- Slippage limits
- Circuit breakers
- Automated market maker safeguards
Staking Mechanism Analysis
Staking Economics
- Minimum stake: [TBD]
- Reward rate: [TBD]
- Unbonding period: [TBD]
- Slashing conditions: [TBD]
Potential Issues
- Staking concentration: Large holders control too much stake
- Reward dilution: New stakers reduce rewards for existing
- Unbonding attacks: Coordinated unstaking to disrupt network
Mitigations:
- Maximum stake limits
- Reward scaling with stake
- Gradual unbonding
- Slashing for malicious unstaking
Marketplace Economics
Pricing Mechanisms
- GPU rental pricing: [TBD]
- AI service pricing: [TBD]
- Fee structure: [TBD]
Potential Manipulations
- Price gouging: Excessive pricing during high demand
- Bid shading: Strategic underbidding
- Market manipulation: Artificial supply/demand
Mitigations:
- Price caps or floors
- Reference pricing
- Reputation-based pricing
- Audit trails for pricing decisions
Incentive Alignment
Agent Incentives
- Reward mechanisms for AI agents
- Punishment for malicious behavior
- Long-term vs short-term incentives
Provider Incentives
- GPU provider rewards
- Quality metrics
- Penalties for poor service
Consumer Incentives
- Cost savings
- Service quality guarantees
- Dispute resolution
Game Theory Analysis
Nash Equilibria
- Identify stable strategy profiles
- Check for dominant strategies
- Verify incentive compatibility
Potential Issues
- Prisoner's dilemma scenarios: Individual rationality leads to collective harm
- Tragedy of the commons: Overuse of shared resources
- Coordination failures: Inability to reach beneficial outcomes
Mitigations:
- Design incentive-compatible mechanisms
- Implement coordination protocols
- Use reputation systems
- Provide clear communication channels
Stress Testing Scenarios
1. Token Price Crash
- Simulate rapid price decline
- Test staking behavior
- Verify protocol stability
2. High Volatility
- Test with extreme price swings
- Verify liquidations don't cascade
- Check oracle stability
3. Liquidity Crisis
- Simulate liquidity withdrawal
- Test marketplace operations
- Verify fallback mechanisms
4. Validator Exit
- Simulate mass validator unstaking
- Test consensus stability
- Verify reward distribution
5. Governance Attack
- Simulate malicious proposal
- Test defense mechanisms
- Verify emergency pause
Monitoring and Alerts
Key Metrics
- Token price and volume
- Staking participation rate
- Validator set composition
- Marketplace liquidity
- Governance participation
Alert Thresholds
- Unusual trading volume
- Rapid stake changes
- Validator concentration
- Price deviation from oracles
- Governance proposal anomalies
Recommendations
Short-term
- Implement basic economic monitoring
- Add circuit breakers for extreme conditions
- Establish governance time locks
- Create emergency pause mechanisms
Medium-term
- Implement oracle aggregation
- Add liquidity protections
- Design incentive-compatible mechanisms
- Create reputation systems
Long-term
- Formal economic modeling
- Simulation testing
- Economic research partnerships
- Continuous optimization