Valantis Documentation
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  • Welcome to Valantis
  • Sovereign Pool
    • The Modules
      • Pool Manager
      • Liquidity Module
      • Swap Fee Module
      • Verifier Module
      • Oracle Module
      • Sovereign Vault
        • Rebase token support
      • Gauge
    • Interacting with Pools
      • Swap Parameters
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      • Multi Token Support
      • Deposit Liquidity
      • Withdraw Liquidity
      • Flash Loans
  • Hybrid Order Type (HOT)
    • Understanding HOT: A Graphical Overview
    • HOT API
      • HTTP request parameters
      • HTTP request response
      • Reasoning for Request structure
      • Solver Integration
      • Market Maker integration
    • HOT Smart Contracts
      • Interfaces
      • State variables and roles
      • AMM
      • HOT Swap
      • AMM Swap
      • Hybrid Order Type (HOT) struct parameters
      • Alternating Nonce Bitmap
      • Deposits
      • Withdrawals
      • Deployment Assumptions
    • Liquidity Manager Docs
      • Reference Oracle
      • Deposit
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      • Signature
    • Swap
      • Swap Context
      • AMM Swap
      • HOT Swap
      • HOT Quote Parameters
        • Bitmap Nonce Instructions
    • Solver Docs
      • Solver Request
      • Simple HOT Swap Example
      • Partial Fill HOT Swap Example
    • Risks and Trust Assumptions
      • Roles
        • Sovereign Pool Manager
        • HOT Manager
        • HOT Signer
        • Liquidity Provider
      • Threats
        • Deposit Sandwich
        • Malicious Price Bound
        • Malicious Signer
        • Mispriced HOT Quote
  • Validly
    • Understanding Validly
    • Swap
    • Deposits and Withdrawals
    • Deployments
  • Stake Exchange (stHYPE AMM)
    • Swap
      • Instant Withdrawals (LST -> Native Token)
      • New Stake (Native Token -> LST)
    • LP Positions
      • LP Withdrawals Instant
      • LP Withdrawal Queued
    • Ratio Fee
    • Lending of Reserves
    • Smart contracts
      • STEXAMM.sol
      • StHYPEWithdrawalModule.sol
      • StexRatioSwapFeeModule.sol
      • DepositWrapper.sol
      • AaveLendingModule.sol
    • Risks and Trust Assumptions
    • Integration examples
  • Deploy and Build
  • Resources
    • Audits
    • Links
    • Get HYPE on HyperEVM
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  1. Hybrid Order Type (HOT)
  2. Risks and Trust Assumptions
  3. Threats

Malicious Signer

A signer could sign maxAllowedQuotes number of HOTs with:

\begin{equation} \begin{aligned} \text{New AMM Spot Price} &= \text{HotPriceDiscounted} \\ &= \text{HotPriceBase} \\ &= \text{oracle price} \times \left(1 + \frac{\text{maxOracleDeviationBips}}{1 \times 10^4}\right) \end{aligned} \end{equation}

After each quote lands, the signer can perform the following actions:

  1. Hot Swaps: Buy maxTokenVolume of the token from the hot swap at a maxOracleDeviationBips discount.

  2. AMM Swaps: Arb the AMM spot price back to the actual price and keep the profits. The loss incurred by the LPs depends on the precise price range bounds of the liquidity position ( set by the Liquidity Provider ) and the amount of effective liquidity in the pool

Bundling maxAllowedQuotes number of malicious quotes in 1 block could lead to LP losses if the bounds are not set correctly.

Moreover, if the maxAllowedQuotes is set to a high value, the upper bound on losses incurred per block could increase, which would reduce the manager's efficacy in detecting such attacks early and pausing the contracts.

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Last updated 1 year ago

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