# Security Best Practices ## Smart Contract Security ### Executor Contract 1. **Multi-Sig Ownership**: Always use multi-sig for executor ownership - Minimum 3-of-5 signers - Separate signers for different functions - Regular key rotation 2. **Allow-List Management**: Strictly control allowed targets - Only add verified protocol addresses - Regularly review and update - Remove unused addresses - Document all additions 3. **Flash Loan Security**: - Only allow verified Aave Pools - Verify initiator in callback - Test flash loan scenarios thoroughly 4. **Pausability**: - Keep pause functionality accessible - Test emergency pause procedures - Document pause/unpause process ## Strategy Security ### Input Validation 1. **Blind Values**: Never hardcode sensitive values - Use blinds for amounts, addresses - Validate blind values before use - Sanitize user inputs 2. **Address Validation**: - Verify all addresses are valid - Check addresses match target chain - Validate protocol addresses 3. **Amount Validation**: - Check for zero amounts - Verify amount precision - Validate against limits ### Guard Usage 1. **Always Use Guards**: - Health factor checks for lending - Slippage protection for swaps - Gas limits for all strategies - Oracle sanity checks 2. **Guard Thresholds**: - Set conservative thresholds - Review and adjust based on market conditions - Test guard behavior 3. **Guard Failure Actions**: - Use "revert" for critical checks - Use "warn" for informational checks - Document guard behavior ## Operational Security ### Key Management 1. **Never Store Private Keys**: - Use hardware wallets - Use key management services (KMS) - Rotate keys regularly - Never commit keys to git 2. **Access Control**: - Limit access to production systems - Use separate keys for different environments - Implement least privilege ### Monitoring 1. **Transaction Monitoring**: - Monitor all executions - Alert on failures - Track gas usage - Review unusual patterns 2. **Guard Monitoring**: - Log all guard evaluations - Alert on guard failures - Track guard effectiveness 3. **Price Monitoring**: - Monitor oracle health - Alert on stale prices - Track price deviations ### Incident Response 1. **Emergency Procedures**: - Pause executor immediately if needed - Document incident response plan - Test emergency procedures - Have rollback plan ready 2. **Communication**: - Notify stakeholders promptly - Document incidents - Post-mortem analysis - Update procedures based on learnings ## Development Security ### Code Review 1. **Review All Changes**: - Require code review - Security-focused reviews - Test coverage requirements 2. **Dependency Management**: - Keep dependencies updated - Review dependency changes - Use dependency scanning ### Testing 1. **Comprehensive Testing**: - Unit tests for all components - Integration tests for flows - Security-focused tests - Fork testing before deployment 2. **Penetration Testing**: - Regular security audits - Test attack vectors - Review access controls ## Best Practices Summary ✅ **Do**: - Use multi-sig for ownership - Validate all inputs - Use guards extensively - Monitor all operations - Test thoroughly - Document everything - Keep dependencies updated - Use hardware wallets ❌ **Don't**: - Hardcode sensitive values - Skip validation - Ignore guard failures - Deploy without testing - Store private keys in code - Skip security reviews - Use untested strategies - Ignore monitoring alerts ## Security Checklist Before deployment: - [ ] Security audit completed - [ ] Multi-sig configured - [ ] Allow-list verified - [ ] Guards tested - [ ] Monitoring configured - [ ] Emergency procedures documented - [ ] Incident response plan ready - [ ] Dependencies updated - [ ] Tests passing - [ ] Documentation complete