Execution security

DerivaDEX is designed to provide execution security through several mechanisms:

Economic incentives: operators must post a bond that can be revoked by the DAO for malicious behavior.

Trusted execution environments: Each operator runs code that is deployed within a trusted execution environment (TEE). This technology provides assurances to users that the execution code approved by governance has NOT been tampered with.

Checkpointing + auditor: The DerivaDEX auditor is a pythonic implementation of the exact logic run by the exchange. In the event that the auditor and exchange reach different state root hashes, governance can pursue blacklisting operators and pausing the exchange to investigate.

Together, these attributes should provide traders with a radical level of transparency compared to centralized exchanges. Furthermore, the DerivaDEX governance process ensures that there are public pathways for protocol community to remediate emergent problems.