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 monitors inputs / outputs within the network, while the controller infrastructure resolves conflicts that could arise as a result of inconsistencies in outputs. This helps guarantee accuracy within the network and blocks any potentially malicious actions from validators who 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)

The controller smart contract is responsible for managing staking, delegating, rewards, jailing, and slashing. In the case of a dispute, the controller checks for 2/3rds consensus within the active validator set, and slashes the malicious validator. In the case of excessive downtime, the controller enables jailing the offending validator.