Threat Detection & Response
Last updated
Last updated
The Risk and Analytics working groups at Inverse Finance have close ties. The AWG has successfully identified ways to leverage analytics beyond studying historical data, and has devised in-house systems to monitor on-chain activity in real time. Custom alerting systems have always played a vital role in our overall security strategy. These have seen different evolutions since our collaboration began in March 2022, and have culminated in the creation of ; a sophisticated analytics product developed by the AWG. Designed to deliver comprehensive data analysis and alerting services, it equips stakeholders with the knowledge necessary to make informed decisions.
Inverse Watch facilitates its users to monitor and analyze a wide array of blockchain activities. By integrating its systems with Twitter and Discord, it disseminates alerts and reports across these platforms, ensuring that information reaches users swiftly and conveniently. For Twitter, these reports manifest as tweet alerts about significant market movements and trends, while on Discord, the bot channels comprehensive reports for community members to analyze and discuss.
Presently, the RWG makes full use of Inverse Watch and has an extensive list of alerts set up to warn members in relevant working groups of on-chain events such as significant price feed deviations and liquidity movements. These alerts allow the RWG to quickly identify and respond to potential security threats, and to take appropriate action to protect the DAO's assets.
Traditional responsible disclosure processes and bug bounties are reactive, guiding whitehats to report vulnerabilities once they’ve discovered them. However, during an ongoing exploit, timely intervention can make the difference between a small loss and a catastrophic one. Safe Harbor legally empowers whitehats to act immediately, recovering funds without fearing legal repercussions. By coupling financial incentives with explicit legal clarity, Safe Harbor fosters a community-driven approach to real-time security, filling a critical gap in DeFi’s defense mechanisms.
Implementation at Inverse Finance
Bounty Terms: Whitehats receive up to 10% of the recovered assets, capped at $1,000,000.
Recovery Addresses: Funds are sent to specific on-chain addresses managed by Inverse Finance.
Anonymous Participation: Whitehats can remain anonymous, requiring no identity verification to ensure broader participation and faster rescues.
On-Chain Registration: The agreement is registered on Ethereum via the Safe Harbor Registry, guaranteeing transparency and immutability.
Ongoing Scope Updates: Newly deployed contracts can be added to the Safe Harbor scope via governance, ensuring continued coverage.
More information on Inverse's Analytics Working Group can be found .
In March 2025, Inverse Finance DAO to strengthen our protocol’s ability to respond swiftly to active exploits. Safe Harbor represents a breakthrough in blockchain security, allowing vetted whitehats to legally intervene during live attacks, rescue imperiled assets, and redirect them to protocol-owned vaults. This process not only deters malicious actors but also rewards proactive defenders, enhancing our overall security posture.
