Security Framework

Overview

Wafra implements a comprehensive, multi-layer security framework that combines traditional cybersecurity best practices with cutting-edge blockchain security measures. The system provides bank-grade security through hardware-backed authentication, multi-signature wallets, and robust smart contract protections.

Security Architecture

Defense-in-Depth Strategy

Wafra employs a defense-in-depth security strategy with multiple layers of protection:

Application Layer Security

Input validation and sanitization for all user inputs
Rate limiting to prevent abuse and DDoS attacks
Secure session management with automatic expiration

Authentication Layer Security

WebAuthn passkeys with hardware-backed storage
Biometric verification that never leaves the user’s device
Multi-device management with cryptographic approval workflows

Wallet Security Layer

Gnosis Safe multisig wallets for enhanced fund protection
Hardware-backed private keys stored in secure enclaves
Transaction validation with multi-signature requirements

Smart Contract Layer Security

Role-based access control with granular permissions
Reentrancy protection and state validation
Emergency pause functionality for critical situations

Infrastructure Layer Security

TLS 1.3 encryption for all data in transit
DDoS protection through Cloudflare
Network monitoring and intrusion detection

Zero-Trust Architecture

Wafra operates on zero-trust security principles:

Never Trust, Always Verify: Every request is authenticated and authorized regardless of source
Least Privilege Access: Each component and user receives minimal permissions necessary for operation
Assume Breach: Systems are designed to contain and mitigate attacks even if perimeter defenses are compromised
Continuous Monitoring: Real-time threat detection and response across all system components

Authentication & Identity Security

WebAuthn Passkey Implementation

Wafra uses WebAuthn passkeys for hardware-backed authentication, providing security superior to traditional passwords or SMS-based 2FA.

Hardware-Backed Security Features:

Private keys are stored in TPM (Trusted Platform Module) or Secure Enclave hardware
Keys have tamper-resistance and cannot be extracted from the device
Hardware random number generator ensures cryptographic strength
ECDSA P-256 cryptographic algorithm with hardware-generated signatures

Biometric Verification Process:

Fingerprint, Face ID, or Touch ID verification
Biometric data is processed locally and never transmitted to servers
Device PIN or password serves as fallback authentication method
User verification is required for all sensitive operations

Passkey Registration Security: When users register a new passkey, the system creates a hardware-backed public-private key pair. The private key never leaves the user’s device, while the public key is stored on Wafra’s servers for signature verification. The registration process includes attestation verification to ensure the authenticator meets security requirements.

Multi-Device Security Management

Wafra supports secure access across multiple devices through a cryptographic approval system:

Device Approval Process:

New devices must be approved by an existing trusted device
Approval requires cryptographic proof of ownership
15-minute approval window prevents unauthorized access
Each device maintains its own passkey and session

Device Revocation Capabilities:

Users can instantly remove compromised or lost devices
Revocation propagates across all services in real-time
Backup devices enable recovery without losing access
Emergency recovery procedures available through support

Session Management Security:

5-day session duration with automatic refresh
Per-device session termination capabilities
Anomaly detection monitors unusual device usage patterns
Session tokens are bound to specific devices

Session & Token Security

Wafra implements robust JWT (JSON Web Token) security with multiple protection layers:

Token Structure and Algorithms:

RS256 (RSA-PSS with SHA-256) algorithm for cryptographic security
5-day expiration with automatic refresh before expiration
Claims include user ID, device ID, and passkey ID for verification
Monthly private key rotation maintains cryptographic freshness

Security Measures:

Token blacklist support for immediate revocation of compromised tokens
HttpOnly cookies prevent XSS attacks from accessing tokens
Secure flag ensures tokens are only transmitted over HTTPS
SameSite strict policy provides CSRF protection

Wallet & Transaction Security

Gnosis Safe Multisig Architecture

Wafra uses Gnosis Safe multisig wallets to provide enhanced security for user funds through multiple signature requirements.

Multisig Signer Configuration:

Controller Key:

Stored in server Hardware Security Module (HSM)
Used for automated protocol operations and yield management
Access restricted to verified, pre-approved operations
Monitored for unusual activity patterns

User Passkey:

Stored in user device hardware (TPM/Secure Enclave)
Required for user-initiated transactions and withdrawals
Protected by biometric verification
Cannot be extracted or duplicated

Backup Key:

Stored in secure cloud HSM infrastructure
Reserved for emergency recovery operations only
Requires multi-party approval for activation
Provides recovery without traditional seed phrases

Current Configuration:

2-of-3 signature threshold for operational efficiency
Future upgrades may implement higher thresholds for enhanced security
Programmable security policies can be customized per user
No single point of failure in key management

Transaction Security Controls

All transactions undergo comprehensive security validation before execution:

Transaction Validation Flow:

User initiates transaction through the mobile application
Client generates transaction data with proper formatting
User provides biometric authentication for passkey signature
Client submits signed transaction to server for validation
Server validates signature and applies controller signature
Transaction is submitted to Gnosis Safe with required signatures
Safe verifies signature threshold before execution
Transaction is executed on blockchain with confirmation

Signature Verification Process:

DER-encoded ECDSA signatures are parsed and validated
Message hash is calculated using authenticator data and client data
ECDSA signature verification using SHA-256 hashing
Additional validation checks on authenticator and client data
Comprehensive error handling and logging for failed verifications

Gas & MEV Protection

Wafra implements several mechanisms to protect users from transaction failures and MEV (Maximal Extractable Value) attacks:

Gas Management Security:

20% safety margin added to gas estimates to prevent failed transactions
Multiple gas price strategies (Slow, Standard, Fast) for user preference
Real-time gas price tracking for optimal transaction timing
Automatic gas price adjustment during network congestion

MEV Protection Strategies:

Private mempool submission when available to prevent frontrunning
Maximum slippage limits protect against sandwich attacks
Commit-reveal schemes for sensitive operations
Transaction timing optimization to avoid peak MEV periods

Transaction Failsafes:

Automatic transaction cancellation after predefined timeouts
Intelligent retry mechanisms with adjusted gas prices
Real-time monitoring and alerting for transaction status
User notifications for failed or stuck transactions

Smart Contract Security

Access Control Framework

Wafra’s smart contracts implement comprehensive role-based access control using OpenZeppelin’s AccessControl framework:

Role Definitions and Hierarchy:

ADMIN_ROLE: Full administrative control over contracts and role management
CONTROLLER_ROLE: Operational control for protocol functions and user transactions
STRATEGY_ROLE: Management of yield strategies and fund allocation

Role Administration:

Role hierarchy prevents privilege escalation attacks
Admin role can grant and revoke controller and strategy roles
Role changes are logged and monitored for security
Time-locked role changes for critical administrative functions

Protected Function Implementation: Critical operations require appropriate role permissions and additional security checks including pause state verification and parameter validation.

Reentrancy & State Protection

Smart contracts implement multiple layers of protection against common attack vectors:

Reentrancy Protection:

OpenZeppelin’s ReentrancyGuard prevents reentrancy attacks
State changes occur before external calls
Checks-Effects-Interactions pattern followed throughout
Custom modifiers provide additional validation layers

State Validation:

Custom error types provide clear failure reasons
Amount validation prevents zero or invalid inputs
Balance checks ensure sufficient funds before operations
Contract pause functionality enables emergency stops

Security Modifiers:

Combined security modifiers provide comprehensive protection
Atomic operations ensure state consistency
Gas optimization while maintaining security
Clear error messages for debugging and user feedback

Upgrade Safety Framework

Wafra uses UUPS (Universal Upgradeable Proxy Standard) for safe contract upgrades:

Upgrade Authorization:

Only admin role can authorize contract upgrades
Additional validation through upgrade validator contract
Storage layout compatibility verification
Interface compatibility validation

Upgrade Safety Measures:

Storage gaps reserved for future variables
Comprehensive upgrade validation process
Test environment validation before production deployment
Rollback procedures for failed upgrades

Validation Requirements:

Storage layout must remain compatible with existing data
Interface compatibility ensures client application compatibility
Security requirements verification prevents downgrade attacks
Multi-signature approval for critical upgrades

Application Security

Input Validation & Sanitization

Wafra implements comprehensive input validation to prevent injection attacks and ensure data integrity:

Address Validation:

Ethereum address format verification using ethers.js
Zero address prevention for security
Checksum validation for address integrity
Blacklist checking for known malicious addresses

Amount Validation:

Decimal precision validation for financial amounts
Range checking to prevent overflow attacks
Positive value enforcement
Maximum value limits to prevent economic attacks

Input Sanitization:

Special character removal to prevent injection attacks
Input length limits to prevent buffer overflow
Whitespace trimming and normalization
SQL injection prevention through parameterized queries

Rate Limiting Implementation:

Redis-based rate limiting with sliding windows
Per-user and per-IP rate limits
Intelligent rate limiting based on user behavior
Automatic IP blocking for abuse patterns

API Security Framework

Wafra’s tRPC API implements multiple security layers:

Security Middleware Stack:

Rate limiting middleware prevents API abuse
Authentication middleware validates JWT tokens
Input validation middleware using Zod schemas
Passkey verification for sensitive operations

Secure Procedure Implementation:

Public procedures for non-sensitive operations
Protected procedures requiring authentication
Sensitive procedures requiring passkey verification
Comprehensive audit logging for all operations

Security Audit Logging:

All sensitive operations are logged with full context
User identification and operation details recorded
Timestamp and IP address tracking
Log data sanitization to prevent information leakage

Data Protection & Privacy

Wafra implements comprehensive data protection measures:

Encryption at Rest:

AES-256-GCM encryption for all sensitive data
AWS KMS or Azure Key Vault for key management
Automatic key rotation every 90 days
Encrypted database fields for PII data

Encryption in Transit:

TLS 1.3 for all communications
Certificate auto-renewal via Let’s Encrypt
Modern cipher suites only
Certificate pinning for mobile applications

Data Minimization:

Collection of only necessary user data
Automatic deletion based on retention policies
Data anonymization after legal requirements expire
Regular data cleanup and archival processes

Privacy Compliance:

GDPR, CCPA, and SOX compliance measures
Right to be forgotten implementation
Data portability for user data export
Privacy policy transparency and user consent

Infrastructure Security

Network Security

Wafra implements comprehensive network security measures:

DDoS Protection:

Cloudflare Pro provides Layer 3/4 DDoS mitigation
Application layer protection against sophisticated attacks
Rate limiting by IP address and API endpoint
Geographic blocking for high-risk regions

Web Application Firewall:

SQL injection prevention with pattern matching
XSS attack filtering and sanitization
CSRF protection through token validation
Malicious bot detection and blocking

Network Segmentation:

Public-facing tier for API gateway and static assets
Application tier for business logic and services
Data tier for database and sensitive operations
Zero-trust network architecture with micro-segmentation

Monitoring & Incident Response

Wafra operates a comprehensive Security Operations Center (SOC):

Real-Time Monitoring:

Datadog and Sentry for application monitoring
Custom dashboards for security metrics
Failed authentication attempt tracking
Unusual transaction pattern detection

Alerting System:

Critical alerts trigger immediate security team notification
Automated escalation procedures for unresolved incidents
Multiple notification channels including PagerDuty, Slack, email, and SMS
Alert correlation to reduce false positives

Incident Response Procedures:

Documented response playbooks for various incident types
Automated threat containment for known attack patterns
Complete audit trail preservation for forensic analysis
Tested disaster recovery procedures with regular drills

Compliance & Auditing

Wafra maintains compliance with multiple regulatory frameworks:

Regulatory Standards:

SOX compliance for financial reporting
PCI DSS Level 1 for payment processing
GDPR and CCPA for privacy protection
SOC 2 Type II and ISO 27001 for security management

Audit Trail Requirements:

Complete logging of all user actions and system events
Tamper-proof log storage with cryptographic integrity
7-year retention for financial records
Real-time audit query capabilities for compliance reporting

Third-Party Assessments:

Quarterly external penetration testing
Annual smart contract security audits
Continuous bug bounty program
Regular compliance assessments by certified auditors

Security Incident Response

Incident Classification

Wafra categorizes security incidents by severity level:

Critical Incidents:

Active security breaches with fund loss potential
Smart contract exploits or vulnerabilities
Large-scale user data compromise
Complete system outages

High Severity Incidents:

Potential security breaches under investigation
Significant user data exposure
Failed authentication attacks at scale
Major service disruptions

Medium Severity Incidents:

Security policy violations
Suspicious activity patterns
Minor data exposure incidents
Service degradation affecting security

Low Severity Incidents:

Minor security concerns
Failed individual authentication attempts
Non-critical system anomalies
Security tool false positives

Incident Response Process

Detection and Analysis:

Automated anomaly detection systems
24/7 security team monitoring
Bug bounty and responsible disclosure programs
User and partner reporting channels

Response and Containment:

Immediate automated threat containment where possible
Rapid impact and scope analysis
Stakeholder notification according to severity
Evidence preservation for investigation

Recovery and Lessons Learned:

System restoration procedures with security validation
User communication and transparency
Post-incident analysis and improvement implementation
Security control enhancement based on findings

Emergency Procedures

Wafra implements comprehensive emergency controls:

Protocol Emergency Controls:

Emergency pause functionality to halt all operations
Emergency withdrawal capabilities for user fund protection
Strategy emergency withdrawal from DeFi protocols
Administrative override capabilities for critical situations

Emergency Response Team:

24/7 on-call security engineering team
Clear escalation procedures and contact information
Predefined emergency response playbooks
Regular emergency response drills and training

Communication Procedures:

Transparent user communication during incidents
Regular status updates through multiple channels
Post-incident detailed reporting
Coordination with law enforcement when required

This comprehensive security framework provides multiple layers of protection, ensuring the safety of user funds and maintaining the integrity of the Wafra platform across all components of the system. The security measures are continuously updated and improved based on threat landscape changes, security research, and lessons learned from the broader DeFi ecosystem.

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