Security Measures

Security Measures in the Protocol:

• Regulated KYC and Token Transfer Restrictions:

  • Ensuring platform integrity by implementing stringent KYC procedures.

  • Limiting token transfers to regulated channels to mitigate risks.

• Smart Contract Security Testing and Auditing:

  • Paramount importance placed on identifying and eliminating vulnerabilities in smart contracts.

  • Rigorous testing and auditing procedures to maintain platform safety.

• Decentralized Identity Management:

  • Leveraging ERC-725 for secure authentication and authorization.

  • Facilitating decentralized identity management to enhance security.

• Privacy Enhancement through Homomorphic Encryption:

  • Utilizing Partial Homomorphic Encryption (PHE) to encrypt security token balances.

  • Protecting user privacy by ensuring confidentiality during computations.

Objective of Security Implementation:

• The protocol implements comprehensive security through several key mechanisms:

  Core Security Implementations

  KYC and Transfer Controls Stringent KYC procedures at signup; ZodorComplianceModule blocks every non-compliant transfer at the contract level.

  Smart Contract Safety 270+ Solidity tests across unit, fuzz, and invariant suites. Foundry fuzz runs 10,000 iterations per property; invariant tests run depth 50. Slither + Mythril gate every PR.

  Identity Management ERC-734/735 (ONCHAINID) for decentralized identity; ZK-KYC with Groth16 proofs for privacy-preserving verification.

  Privacy Protection Three-mode privacy stack (ZK-KYC, Paillier, Zama fhEVM) plus the Path C model for futures-style instruments.

  Backend Security JWT with RS256 signing; rate limiting (500 req / 15 min on /graphql); helmet + CORS allowlist; Sumsub HMAC-SHA256 for webhook authentication; AWS Lambda execution role with least privilege.

  Bridge Security CCIP MessageId receipts validated on both sides; LayerZero OFT trust assumptions documented; compliance precheck on both source and destination chains.

  Operational Security .env is gitignored; .env.example for templates; deployer keys stored only in CI secrets; deployed addresses canonicalized in scripts/deployed-addresses.json.

  Audit & Continuous Hardening

  • Foundry fuzz + invariant CI

  • Slither static analysis on every PR (zero HIGH / CRITICAL gate)

  • Mythril deep symbolic analysis on token + bridge contracts

  • External production audit scheduled before mainnet launch

  • Bug bounty program planned post-audit

  • Continuous monitoring through Sentry (frontend) and CloudWatch (backend)

  • Community feedback channels in the Zodor Discord and Telegram