Hydro is a key project for the Cosmos Hub with the mission to deploy community funds in third-party protocols. Making sure that no security or operational incidents, both in Hydro contracts or in any of the liquidity venues, affect the funds of the Cosmos Hub community is critical for the long-term success of the Cosmos Hub and Hydro. Given the multi-chain nature of Hydro and its dependence on third-party protocols, building a comprehensive security monitoring and threat detection system customized for Hydro is essential.
This grant aims to build such a system that can be leveraged both by the Hydro committee and the wider community, plus integrate advanced rate limit analytics in the Cosmos Hub that complements value-at-risk capping measures of the Hydro monitoring system. This initiative is critical to protecting the ATOM deployed by Hydro.
After the completion of this grant, the following goals will be achieved:
- A comprehensive alerting and monitoring system for Hydro contracts and the POL funds deployed in 3rd party liquidity venues following a pre-designed implementation plan.
- Automated incident response capabilities that will enable both the Hydro committee and Hydro bidders to respond more effectively to any operational or security incident.
- An automated public Telegram alert channel to keep the Cosmos Hub community updated on relevant events related to Hydro.
- Integration of the Cosmos Hub into the IBC Workbench to monitor inflows and assets, including those of Hydro, and help the community set effective IBC Rate Limits, balancing the trade-off of liquidity and security.
All these deliverables will be maintained for 15 months from the start of the grant.
