Fraud Proofs

Elixir's technical architecture ensures that orderbook flows and off-chain market making activities operate functionally and securely.

Security is at the core of Elixir's network. On the technical process flow side of things, the auditor and controller infrastructure ensures that the data broadcasted to exchanges are honest and accurate.

The auditor infrastructure monitor inputs / outputs within the network, while the controller infrastructure resolves conflicts that could arise as a result of inconsistencies in outputs. This guarantees accuracy within the network and blocks any potentially malicious actions from validators whom may attempt to output data that could prove harmful to the strategies and users.

Auditors

Auditors work to keep the rest of the network honest. The auditor monitors the inputs and outputs from each of the various actors in the network, and in the case of a discrepancy (either reported or observed), an auditor submits a proof of malicious activity to the ETH slashing smart contract in the controller in exchange for a bounty. The bounty will be extracted from the validator's stake and credited to the auditor.

Finally, the auditors are responsible for ensuring validator uptimes for purposes of staking rewards.

Controller (smart contract)

When validators submit conflicting outputs, Elixir uses a Provable TEE (https://docs.provable.xyz/) to securely compute the correct outputs for a given set of input data, and return a corresponding authenticity proof. Possessing the capability to execute each of the market making strategies on-chain, it acts as the arbiter of any disagreement between parties in the network.

The controller is responsible for crucial activities like managing staking, rewards, bond pools, and slashing (in the case that a validator is found to be acting dishonestly).