feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
# KRAIKEN Mainnet Deployment Runbook
**Target chain:** Base (L2)
**Contract version:** V2 (OptimizerV3 w/ directional VWAP)
---
## 1. Pre-Deployment Checklist
- [ ] All tests pass: `cd onchain && forge test`
- [ ] Gas snapshot baseline: `forge snapshot`
- [ ] Security review complete (see `analysis/SECURITY_REVIEW.md` )
- [ ] Storage layout verified for UUPS upgrade (see `analysis/STORAGE_LAYOUT.md` )
- [ ] Floor ratchet mitigation status confirmed (branch `fix/floor-ratchet` )
- [ ] Multisig wallet ready for `feeDestination` (Gnosis Safe on Base)
- [ ] Deployer wallet funded with sufficient ETH for gas (~0.05 ETH)
- [ ] LiquidityManager funding wallet ready (initial ETH seed for pool positions)
- [ ] `.secret` seed phrase file present in `onchain/` (deployer account)
- [ ] Base RPC endpoint configured and tested
- [ ] Etherscan/Basescan API key ready for contract verification
- [ ] kraiken-lib version updated: `COMPATIBLE_CONTRACT_VERSIONS` includes `2`
---
## 2. Contract Deployment Order
All contracts are deployed in a single broadcast transaction via `DeployBaseMainnet.sol` :
```
1. Kraiken token (ERC20 + ERC20Permit)
2. Stake contract (Kraiken address, feeDestination)
3. Kraiken.setStakingPool(Stake)
4. Uniswap V3 Pool (create or use existing, FEE=10000)
5. Pool initialization (1 cent starting price)
6. OptimizerV3 implementation + ERC1967Proxy
7. LiquidityManager (factory, WETH, Kraiken, OptimizerProxy)
8. LiquidityManager.setFeeDestination(multisig)
9. Kraiken.setLiquidityManager(LiquidityManager)
```
### Deploy Command
```bash
cd onchain
# Verify configuration first
cat script/DeployBaseMainnet.sol # Check feeDest, weth, v3Factory
# Dry run (no broadcast)
forge script script/DeployBaseMainnet.sol \
--rpc-url $BASE_RPC \
--sender $(cast wallet address --mnemonic "$(cat .secret)")
# Live deployment
forge script script/DeployBaseMainnet.sol \
--rpc-url $BASE_RPC \
--broadcast \
--verify \
--etherscan-api-key $BASESCAN_API_KEY \
--slow
```
**Critical:** The `--slow` flag submits transactions one at a time, waiting for confirmation. This prevents nonce issues on Base.
### Record Deployment Addresses
After deployment, save all addresses from console output:
```bash
# Update deployments file
cat >> deployments-mainnet.json < < 'EOF'
{
"chain": "base",
"chainId": 8453,
"kraiken": "0x...",
"stake": "0x...",
"pool": "0x...",
"liquidityManager": "0x...",
"optimizerProxy": "0x...",
"optimizerImpl": "0x...",
"feeDestination": "0x...",
"deployer": "0x...",
"deployedAt": "2026-XX-XX",
"txHash": "0x..."
}
EOF
```
---
## 3. Post-Deployment Setup
### 3.1 Fund LiquidityManager
The LM needs ETH to create initial positions:
```bash
# Send ETH to LiquidityManager (unwrapped — it will wrap to WETH internally)
cast send $LIQUIDITY_MANAGER --value 10ether \
--rpc-url $BASE_RPC \
--mnemonic "$(cat .secret)"
```
2026-03-16 14:43:37 +00:00
### 3.2 Trigger First Recenter
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
2026-03-16 14:43:37 +00:00
`recenter()` is permissionless — any address may call it. The 60-second cooldown (`MIN_RECENTER_INTERVAL` ) and TWAP oracle check are always enforced.
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
```bash
# Wait for pool to accumulate some TWAP history (~5 minutes of trades)
2026-03-16 14:43:37 +00:00
# Anyone can trigger the first recenter; txnBot will take over ongoing calls
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
cast send $LIQUIDITY_MANAGER "recenter()" \
--rpc-url $BASE_RPC \
--from $TXNBOT_ADDRESS
```
### 3.4 Configure txnBot
Update `services/txnBot/` configuration for Base mainnet:
- Set `LIQUIDITY_MANAGER` address
- Set `KRAIKEN` address
- Set RPC to Base mainnet
- Deploy txnBot service
### 3.5 Configure Ponder Indexer
```bash
# Update kraiken-lib/src/version.ts
export const COMPATIBLE_CONTRACT_VERSIONS = [2];
# Update Ponder config for Base mainnet addresses
# Set PONDER_NETWORK=BASE in environment
```
### 3.6 Update Frontend
- Update contract addresses in web-app configuration
- Update kraiken-lib ABIs: `cd onchain && forge build` then rebuild kraiken-lib
- Deploy frontend to production
---
## 4. Optimizer Upgrade Procedure
If upgrading an existing Optimizer proxy to OptimizerV3:
```bash
cd onchain
# Set proxy address
export OPTIMIZER_PROXY=0x...
# Dry run
forge script script/UpgradeOptimizer.sol \
--rpc-url $BASE_RPC
# Execute upgrade
forge script script/UpgradeOptimizer.sol \
--rpc-url $BASE_RPC \
--broadcast \
--verify \
--etherscan-api-key $BASESCAN_API_KEY
# Verify post-upgrade
cast call $OPTIMIZER_PROXY "getLiquidityParams()" --rpc-url $BASE_RPC
```
**Expected output:** Bear-mode defaults (CI=0, AS=0.3e18, AW=100, DD=0.3e18) since staking will be < 91 % .
---
## 5. Verification Steps
Run these checks after deployment to confirm everything is wired correctly:
```bash
# 1. Kraiken token
cast call $KRAIKEN "VERSION()" --rpc-url $BASE_RPC # Should return 2
cast call $KRAIKEN "peripheryContracts()" --rpc-url $BASE_RPC # LM + Stake addresses
# 2. LiquidityManager
cast call $LM "feeDestination()" --rpc-url $BASE_RPC # Should be multisig
2026-03-16 14:43:37 +00:00
cast call $LM "lastRecenterTime()" --rpc-url $BASE_RPC # Should be non-zero after first recenter
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
cast call $LM "positions(0)" --rpc-url $BASE_RPC # Floor position (after recenter)
cast call $LM "positions(1)" --rpc-url $BASE_RPC # Anchor position
cast call $LM "positions(2)" --rpc-url $BASE_RPC # Discovery position
# 3. OptimizerV3 (through proxy)
cast call $OPTIMIZER "getLiquidityParams()" --rpc-url $BASE_RPC
# 4. Pool state
cast call $POOL "slot0()" --rpc-url $BASE_RPC # Current tick, price
cast call $POOL "liquidity()" --rpc-url $BASE_RPC # Total liquidity
# 5. Stake contract
cast call $STAKE "nextPositionId()" --rpc-url $BASE_RPC # Should be 0 initially
# 6. ETH balance
cast balance $LM --rpc-url $BASE_RPC # Should show funded amount
```
---
## 6. Emergency Procedures
### 6.1 Pause Recentering
2026-03-16 14:43:37 +00:00
**NOTE:** `recenter()` is permissionless — there is no access-control switch to block it. The only mechanism that prevents a recenter is the 60-second `MIN_RECENTER_INTERVAL` cooldown and the TWAP oracle check. There is no admin function to revoke or grant access.
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
2026-03-16 14:43:37 +00:00
In an attack scenario the most effective response is to upgrade or replace the contract (see §6.3 / §6.4). Existing positions remain in place and continue earning fees regardless of recenter activity.
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
### 6.2 Upgrade Optimizer to Safe Defaults
Deploy a minimal "safe" optimizer that always returns bear parameters:
```bash
# Deploy SafeOptimizer with hardcoded bear params
# Upgrade proxy to SafeOptimizer
OPTIMIZER_PROXY=$OPTIMIZER forge script script/UpgradeOptimizer.sol \
--rpc-url $BASE_RPC --broadcast
```
### 6.3 Emergency Parameter Override
If the optimizer needs temporary override, deploy a new implementation with hardcoded safe parameters:
- CI=0, AS=30% (0.3e18), AW=100, DD=0.3e18 (bear defaults)
- These were verified safe across all 1050 parameter sweep combinations
### 6.4 Rollback Plan
**There is no rollback for deployed contracts.** Mitigation options:
- Upgrade optimizer proxy to revert to V1/V2 logic
- Revoke recenter access to freeze positions
- The LiquidityManager itself is NOT upgradeable (by design — immutable control)
- In worst case: deploy entirely new contract set, migrate liquidity
### 6.5 Known Attack Response: Floor Ratchet
If floor ratchet extraction is detected (rapid recenters + floor tick creeping toward current price):
2026-03-16 14:43:37 +00:00
1. **Immediately** assess severity — `recenter()` is permissionless (no access-control switch exists); the 60s cooldown is the only rate limiter
feat: OptimizerV3 with direct 2D staking-to-LP parameter mapping
Core protocol changes for launch readiness:
- OptimizerV3: binary bear/bull mapping from (staking%, avgTax) — avoids
exploitable AW 30-90 kill zone. Bear: AS=30%, AW=100, CI=0, DD=0.3e18.
Bull: AS=100%, AW=20, CI=0, DD=1e18. UUPS upgradeable with __gap[48].
- Directional VWAP: only records prices on ETH inflow (buys), preventing
sell-side dilution of price memory
- Floor formula: unified max(scarcity, mirror, clamp) — VWAP mirror uses
distance from adjusted VWAP as floor distance, no branching
- PriceOracle (M-1 fix): correct fallback TWAP divisor (60000s, not 300s)
- Access control (M-2 fix): deployer-only guard on one-time setters
- Recenter rate limit (M-3 fix): 60-second cooldown for open recenters
- Safe fallback params: recenter() optimizer-failure defaults changed from
exploitable CI=50%/AW=50 to safe bear-mode CI=0/AW=100
- Recentered event for monitoring and indexing
- VERSION bump to 2, kraiken-lib COMPATIBLE_CONTRACT_VERSIONS updated
Co-Authored-By: Claude Opus 4.6 <noreply@anthropic.com>
2026-02-13 18:21:18 +00:00
2. Assess floor position state via `positions(0)`
3. Deploy patched LiquidityManager if fix is ready
4. Current mitigation: bear-mode parameters (AW=100) create 7000-tick floor distance, making ratchet extraction significantly harder
---
## 7. Monitoring Setup
### On-Chain Monitoring
Track these metrics via Ponder or direct RPC polling:
| Metric | How | Alert Threshold |
|--------|-----|-----------------|
| Floor tick distance | `positions(0).tickLower - currentTick` | < 2000 ticks |
| Recenter frequency | Count `recenter()` calls per hour | > 10/hour |
| LM ETH balance | `address(LM).balance + WETH.balanceOf(LM)` | < 1 ETH ( most ETH is in pool positions ) |
| VWAP drift | `getVWAP()` vs current price | > 50% divergence |
| Optimizer mode | `getLiquidityParams()` return values | Unexpected bull in low-staking |
| Fee revenue | WETH transfers to feeDestination | Sudden drop to 0 |
### Off-Chain Monitoring
- txnBot health: `GET /api/txn/status` — should return healthy
- Ponder indexing: `GET /api/graphql` — query `stats` entity
- Frontend version check: `useVersionCheck()` composable validates contract VERSION
### Alerting Triggers
1. **Critical:** Floor position liquidity = 0 (no floor protection)
2. **Critical:** recenter() reverts for > 1 hour
3. **High:** > 20 recenters in 1 hour (potential manipulation)
4. **Medium:** VWAP compression triggered (high cumulative volume)
5. **Low:** Optimizer returns bull mode (verify staking metrics justify it)
---
## 8. Deployment Timeline
| Step | Duration | Dependency |
|------|----------|------------|
| Deploy contracts | ~2 min | Funded deployer wallet |
| Verify on Basescan | ~5 min | Deployment complete |
| Fund LiquidityManager | ~1 min | Deployment complete |
| Set recenter access | ~1 min | feeDestination set (multisig) |
| Wait for TWAP history | ~5-10 min | Pool initialized |
| First recenter | ~1 min | TWAP history + recenter access |
| Deploy txnBot | ~5 min | Addresses configured |
| Deploy Ponder | ~10 min | Addresses + kraiken-lib updated |
| Deploy frontend | ~5 min | Ponder running |
| **Total** | ** ~30-40 min** | |