Slashing-Rules | Proportional Security Bond Reductions for Malicious Feeds

[jaynomyaro]

Summary

This PR introduces proportional slashing rules for oracle security bonds, enabling penalties to scale with the severity and frequency of malicious or invalid data submissions. The implementation strengthens protocol security by discouraging malicious behavior while ensuring fair treatment of validators and data providers.

Changes Made

• Implemented proportional slashing logic for malicious or invalid feed submissions.
• Added configurable penalty thresholds based on the severity of protocol violations.
• Applied bond reductions proportional to the detected offense instead of fixed penalties.
• Introduced validation checks to identify malicious, stale, conflicting, and invalid feed data.
• Recorded slashing events with detailed metadata for auditing and dispute resolution.
• Added safeguards to prevent duplicate slashing for the same violation.
• Introduced unit and integration tests covering valid submissions, proportional penalties, repeated offenses, edge cases, and dispute scenarios.
• Updated protocol documentation with slashing rules, configuration options, and operational examples.

Benefits

• Strengthens economic security by penalizing malicious behavior fairly.
• Encourages honest participation from oracle operators.
• Prevents excessive punishment for minor or isolated violations.
• Improves transparency through comprehensive slashing event records.
• Provides a flexible framework for future governance-controlled penalty adjustments.

Testing

• Verified proportional bond reductions for varying violation severities.
• Confirmed honest feed submissions are not penalized.
• Tested repeated malicious submissions and escalating penalties.
• Validated audit logs and slashing event records.
• Ran the complete test suite to ensure no regressions.
  closed 🪓 Slashing-Rules | Proportional Security Bond Reductions for Malicious Feeds #489