Author: Christopher A. (@CryptosBestMustache on TG)
Date: Aug, 13, 2023
Proposal Type: Funding Proposal
Executive Summary:
Chainalysis offers a comprehensive security suite tailored for DODO. Through predictive monitoring, streamlined recovery coordination, and bespoke incident response planning, Chainalysis proposes a $30,000 grant for 12 months of service to fortify DODO’s security infrastructure & incident response framework against the rising threat of DeFi hacks and exploits. [0.00091% of $32.85M TVL]
Motivation:
Hackers are stealing more cryptocurrency from DeFi platforms than ever before. DeFi protocols as victims accounted for 82% of all stolen crypto in 2022 — a total of $3.1 billion — and we’re seeing this trend continue in 2023. As such, securing incident response coverage has become a top priority, and Chainalysis is the leading crypto asset recovery solution. To date, Chainalysis has aided in the recovery of over $11B in stolen funds through our own investigations and others we supported. I’ve linked some customer references and supporting data below if you want to read further.
Proactive CIR is a rapid-response retainer service. In procuring it, DODO would have Chainalysis’ world-class, global team of professional investigators and cybersecurity experts on standby 24/7 in the event of a hack or exploit, ready to respond immediately. Key benefits include:
- Deter Hacks: The best outcome is you never get hacked. CIR helps deter hackers by letting them know a leading global crypto investigative team is on your side.
- Reaction Time: Investigative response time is the most critical vector to asset recovery. Having a proactive solution in place decreases the time to respond and increases the likelihood of success.
- Guaranteed Support: Contracting with Chainalysis after a hack occurs is considerably more expensive, slower, and we cannot guarantee the team will have the bandwidth to take on the case. Purchasing Proactive CIR solves these problems - plus, you benefit from being in the Chainalysis network via education, threat intel, and more.
- Technical Skills: The ability to trace funds through various types of complex platforms is a crucial part of the CIR offering. This applies to identified mixer platforms but also unidentified mixers and new bridging protocols between blockchains.
- Network: Chainalysis has a huge customer base and, with it, a sizable network with personal connections to almost all significant exchanges and services in the crypto space. Also, our strong relationship with Law Enforcement Agencies around the world makes us very efficient in engaging the relevant authorities when needed.
Customer References and Supporting Data:
- Blog post on the Axie Infinity Hack & Successful Asset Recovery 2: “With the help of law enforcement and leading organizations in the cryptocurrency industry, more than $30 million worth of cryptocurrency stolen by North Korean-linked hackers has been seized.”
- Twitter Post from Morpho: “Morpho Labs has partnered up with Chainalysis to strengthen the Incident Response Plan for Morpho protocol!”
- Abracadabra governance proposal: “Can’t go wrong with more security!! Awesome RFC”
- Twitter Post from Aura Finance: “Aura will be able to deter hackers and have an asset recovery plan in potential events.”
Specification:
Procuring Proactive CIR costs up to $30,000 for 12 months of coverage (paid upfront). This includes up to 100 hours of investigative work and support for any hacks or incidents that occur in the covered 12-month period. Approval of this AIP shall begin the onboarding process for CIR and transfer of payment for 12 months of coverage.
Voting:
This vote will be a single-choice vote. You may vote “For” or “Against” this proposal or choose to abstain from the vote. By voting “For” this proposal, you are voting in favor of adopting CIR.