Bracket Protector
Last updated
Last updated
The Bracket Protector is the technical implementation we use to ensure the security of the Strategy Vaults. Our security protects the users who entrusted their $brktETH to the strategy manager. Bracket Protector limits what a strategy manager can do to ONLY what is approved within their whitelist, which includes:
Moving between chains and using allowed bridges
Assets that can be held
Protocols and functions within a protocol to both enforce the investment policy and to ensure no functions are called with arguments that can possibly allow money leave the Bracket platform.
Limits to the amount of leverage
Managing the withdrawal queue to ensuring users get their requested withdrawals
Bracket Protector operates on top of a multi-signature-enabled Smart Contract Wallet, integrating restrictions to limit multi-signature operations to specific scopes. The Protector's components limit permissions, addresses, and operations for each strategy vault on Bracket. Bracket creates a protector configuration for each relevant strategy vault, one for each allowed chain.
Managers have the advantage of using the protocols websites directly with the types of browser injected wallets they are used to. As long as they stay within their limits, their actions will never be blocked. If they attempt to go outside their whitelisted limits, the transaction will not be approved. This allows the manager to integrates seamlessly with protocols such as Uniswap V3, Aave, Compound, inter-chain bridges, and many more.
Some strategy managers prefer the rich features provided by institutional MPC wallets, such as Fordefi. The Bracket Platform extends its security into these wallets by serving as a policy administrator, whitelisting protocols and addresses, with the ability to set permissions, limit withdrawals to platform, and approve certain changes to the policies via administrative quorum within the wallet infrastructure.
Some limited strategy managers have specific strategies that are permitted to access centralized exchanges. As such, these setups require additional agreements and controls to extend security. Bracket will agreements with the relevant qualified custodians, acting as a policy administrator. Thus, the strategy manager cannot unilaterally update any of the policies and must return funds to the approved destination addresses. Further, where necessary, strategy managers may use off-chain settlement/netting to mitigate centralized exchange risks.
Since a Bracket Protector contract has been deployed for each strategy on each chain, managers can bridge their Strategy vault's funds between chains, if allowed based on their investment policy. The assets bridged will move from one Bracket protector instance to another, so it's controlled at all times, on all chains, with the identical set of restrictions.
