AI Protocol Guard
Last updated
Last updated
AI Protocol Guard is an intermediary layer that sits between underlying assets and users’ assets, adding an extra security mechanism on top of smart contracts. It can be customized for individual trading strategies and asset pools, allowing tailored permission controls and restrictions for asset managers.
AI Protocol Guard is built on top of the Smart Contract Wallet “Safe”, which inherently has multi-signature capabilities. AI Protocol Guard’s key role is to constrain the multi-sig functionality of Safe within a specified scope.
AI Protocol Guard configures a Vault Guardian for each Vault, specifying the target address and permissions for that target address. The Safe and AI Protocol Guard then work together to verify the validity of any transaction.
As shown in the diagram, three key elements need to be configured for the Vault’s permissions:
Specifying the allowed contracts
Defining the allowed function operations
Specifying if the contract functions require ACL verification.
Using Uniswap as an example, if an asset manager wants to perform market-making on Uniswap, AI Protocol Guard should configure:
Restrictions on who has the authority to invest and redeem the funds.
Restrictions on the smart contract addresses where funds can be sent, allowing only the specific Uniswap contract address(es) for liquidity provision.
Permitted LP pool contracts and authorized token addresses (e.g., ETH, USDC) for providing liquidity, while preventing interaction with other tokens.
The asset manager could also invest the funds in other assets like U.S. Treasuries or use them for contract trading. AI Protocol Guard already supports authorization integrations with protocols like Uniswap V3, GMX V2, Compound, Lido, Ethena, PancakeSwap, and more.
To ensure security and upgradeability, AI Protocol Guard has a governance mechanism separated from the operation mechanism. The AI Protocol Vault Guardian is responsible for execution, while the Governor controls governance powers, which can be managed by the community and asset managers. This includes features like Time Lock to ensure user transparency and choice.
The Governor has broad powers, including upgrading the Guardian, adding or removing authorizations, managing native token transfers and whitelisted addresses, transferring Governor powers, and permanently disabling the governance rights.
The benefit of this approach is that even if there are issues with the Guardian, the Governor can still take timely remedial measures to maximize the protection of user assets.
