Revest Protocol Exploit Recovery Plan

  • A full breakdown of all parties directly impacted
  • A timeline of events from the exploit’s start through the team’s response
  • Impact analysis for Revest on all other integrated chains
  • Our proposed steps for addressing users and protocols impacted by this event
  • Our plan for short-term and long term risk mitigation within our own systems
  • How we will strengthen Revest and ensure we are at the forefront of security moving forward

Impact Statement of Lost Tokens

Timeline of Events

Mechanism Behind the Exploit

  • fnftId to identify the relevant series
  • Amount of tokens to deposit to the desired series per FNFT
  • Quantity of FNFTs which should have additional deposits made to them

So how did this happen?

Alert and Response

Early Takeaways

  • The Revest circuit-breaker system worked — that we were able to pause token transfers on RVST prevented the total draining of the RVST-ETH pool.
  • More fallback methods of communications between the Revest governors will be one of our highest priorities moving forward. The Revest Gnosis governance system experienced a significant failure in communication that could have easily led to further losses of funds.
  • One audit is never enough. There is no such thing as too many audits. More audits will be commissioned.
  • Ongoing penetration testing is crucial. The formal establishment of improved QA systems within the Revest Team will be pursued.
  • Better alert systems are needed. We were not made aware of this attack until well into its progress. Granted, the attack was clearly designed to target the protocol on Saturday night Eastern time / late night UTC. With better alert systems, we would have had more time to react quickly and stop events like these before they start.

Impact on Other Chains

Plan of Redress for Impacted Parties

Short-Term Damage Mitigation Strategy

Long-Term Risk Management Strategy

  • Our team will be commissioning multiple additional audits of the Revest Protocol codebase via multiple audit firms. As security industry leaders both TrailOfBits and OpenZeppelin audits are our desire, and welcome any assistance in contracting them for the highest security assurances that we can provide.
  • We will be forming an internal group to investigate the feasibility of offering automated insurance on token storage within our system and investigating which reputable protocols are in a position to provide us with such a solution.
  • We will be adjusting our internal design patterns to emphasize further decentralization within our value-storage architecture. Our solution with LQDR utilizes smart wallets in a manner that makes centralized attacks far more difficult to pull off — we want to explore how this solution can be applied for our Token Vault system.
  • We will be seeking out workshops from Solidity experts on internal best-practices and how to implement ongoing penetration testing of our own systems.
  • We will be exploring hiring a consultant to instruct our team on internal best-practices for IT security. Though off-chain security failures played no role in this exploit, we feel that by better instilling a culture of caution and cybersecurity awareness in our team we can better be prepared to avoid similar situations in the future.
  • We will be improving the connectivity of our Gnosis Multisig governors group and designing similar functionality into the Revest DAO as we move into a fully decentralized organization. Better communication and more avenues of contact will be formally implemented into all current and future Revest governance systems.
  • Circuit breakers will be implemented for the protocol in a way that allows one individual to throw a “switch” to disable all transactions but requires multiple sign-offs to re-enable them.
  • We will be implementing automated alerts for large-value movements out of TokenVault. Had such systems existed, due to the Gnosis disconnectivity, it is unlikely that anything more could have been done, but the latency between this exploit occurring and the team being made aware should be reduced. We will be seeking automated alert systems for high-volume token movement.

Closing Statement

Post-Script

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