Our vision for Security Operations at Inverse is to establish a robust and comprehensive security framework that not only addresses current threats but also evolves with the rapidly changing landscape of DeFi. We are committed to implementing a "Four Lines of Defense" strategy, creating multiple layers of security to safeguard our ecosystem. This strategy is an ongoing effort, with continuous enhancements to accommodate technological advancements, eliminate redundancies, adopt superior security vendors, and optimize expenditure.
Defense I: Regular Third-Party Audits
The first line of defense in our security strategy involves conducting regular third-party audits to ensure that sensitive deployed code has been meticulously scrutinized and approved by a diverse group of developers and security researchers. Following the exploit in 2022, we intensified our efforts in this area by engaging with reputable security experts and firms such as [redacted], [redacted], Nomoi, yAudit, and Code4Rena. These collaborations have provided us with invaluable insights into potential vulnerabilities and have significantly strengthened our codebase.
Recent research suggests that, budget permitting, security contests are the most effective method of uncovering bugs, offering a cost-efficient alternative to traditional auditing firms. While auditing firms provide thorough assessments, they tend to be less cost-effective. Solo auditors strike a balance between cost and depth of analysis, making them a viable option for certain projects. By leveraging a mix of these approaches, we aim to maximize coverage and expertise in our security assessments.
Defense II: Bug Bounty Program
Our second line of defense is the establishment and maintenance of a robust bug bounty program, which serves as a protective layer to catch any oversights from the first line of defense and fosters a culture of responsible disclosure within the developer community. Currently hosted on ImmuneFi, our bug bounty program receives submissions weekly from whitehats ranging in level and experience from novice to top tier.
While this engagement is encouraging, we are evaluating options to improve submission quality while maintaining accessibility for valuable contributors. ImmuneFi offers a triaging service to filter out low-quality submissions which may be considered in the future.
Defense III: Threat Detection and Automated Response
The third line of defense focuses on implementing real-time monitoring and automated mechanisms to promptly detect threats and respond effectively. Our analytics platform, Inverse Watch, currently provides real-time monitoring and customizable alerts, matching the baseline offerings of many security vendors. However, we recognize the potential to enhance our capabilities by exploring third-party threat detection platforms with advanced features, such as built-in pause controllers.
These automated circuit breakers can override manual controls, such as Safe multisigs, to halt operations immediately upon detecting suspicious activities, thereby preventing damage proactively by responding at the first sign of an attack. We are currently exploring partnerships with platforms like Hypernative and Forta to integrate these advanced threat detection features. By doing so, we aim to reduce response times and minimize potential losses during security incidents.
Defense IV: Investigations and Law Enforcement Collaboration
Our fourth and final line of defense involves leveraging the threat of legal consequences to deter malicious actors by onboarding specialized investigation firms on retainer. This enables us to take swift action and pursue legal recourse against criminals in the event of an incident. We are currently exploring the possibility of engaging the services of ZeroShadow to enhance our investigative and incident response efforts. By collaborating with investigation specialists and facilitating cooperation with law enforcement agencies, we increase the likelihood of recovering assets and bringing offenders to justice. This strategy not only acts as a deterrent to potential attackers but also demonstrates our commitment to protecting our users and the integrity of our protocol.
We are committed to regularly updating our security practices to address new vulnerabilities and attack vectors, staying informed about industry trends, and incorporating cutting-edge security solutions. Security is not a one-time effort but a continuous journey. Optimization of resources is also a key focus, as we strive to evaluate the effectiveness and efficiency of our security investments, selecting the most impactful measures and vendors to protect our ecosystem.
