Autonomously monitor and defend wrapped/bridged assets across chains. AI-powered reserve verification with cross-chain rescue.
Every major DeFi exploit in the last 2 years involved wrapped/bridged assets losing their peg:
- wBTC depeg fears - Bridge vulnerability rumors triggered mass withdrawals
- WETH bridge hacks - Attacker drained bridge reserves, WETH depegged instantly
- Bridged stablecoin collapses - Bridge got exploited, users on destination chain had zero warning
- Silent reserve depletion - Reserves evaporate while users hold worthless wrapped tokens
When a bridge gets exploited or a reserve gets drained, holders of wrapped assets have zero automated warning and no escape mechanism. They watch their collateral evaporate in real-time.
An autonomous Proof-of-Reserve Watchdog that:
- Monitors reserve ratios of wrapped assets across chains in real-time (every 30 seconds)
- Detects early warning signals via AI analysis (whale flows, TVL anomalies, reserve depletion)
- Triggers autonomous rescue when reserves drop below critical thresholds
- Executes privately via ACE so MEV bots can't front-run the panic exit
- Proves everything on-chain - every reserve check is attested and immutable
Traditional bridges: "We monitor reserves" (trust us)
PoR Watchdog: "Our AI autonomously defends your wrapped assets across chains, verified on-chain every 30 seconds"
User holds wBTC on Ethereum
↓
PoR Watchdog detects: Bridge TVL dropped 50% in 10 minutes
↓
AI risk engine flags: EXPLOIT threat - reserves at risk
↓
CRE workflow triggers CCIP rescue
↓
User's wBTC position automatically unwound via ACE (private, MEV-proof)
↓
User receives underlying BTC on source chain
↓
On-chain attestation: "Reserve rescue executed at 2:14:32 UTC"
| Step | What It Does |
|---|---|
| 1 | Read wrapped asset supplies (totalSupply) on all destination chains via EVM calls |
| 2 | Read bridge contract balances on source chains (actual reserve backing) |
| 3 | Calculate reserve ratio = (bridge balance / totalSupply) * 100 |
| 4 | Fetch asset prices from Chainlink Data Feeds |
| 5 | AI analysis via Confidential HTTP: "Is this reserve depletion real or noise?" |
| 6 | Dual-engine scoring: rule-based thresholds + AI risk assessment |
| 7 | If ratio < 98%, emit alert and trigger rescue |
| 8 | On-chain proof-of-reserve attestation (immutable record) |
PoR Watchdog detects 6 threat types:
| Threat | Detection | Action |
|---|---|---|
| NORMAL | Ratio 100-150% | Healthy - log attestation |
| DEPEG | Ratio 98-100% | Warning - increase monitoring |
| EXPLOIT | Ratio drops > 10% in 5min | Alert - prepare rescue |
| BRIDGE_DRAIN | Bridge TVL anomaly | Critical - trigger rescue |
| BANK_RUN | Withdrawal velocity spike | Emergency - halt minting |
| ORACLE_STALE | Price feed lag > 1hr | Safe mode - emergency mode |
- wBTC (Wrapped Bitcoin)
- wETH (Wrapped Ether)
- Bridged stablecoins (USDC, DAI, USDT)
- Any ERC-20 with bridge contract on source chain
- Monitor reserves on all chains simultaneously
- Detect imbalances in real-time
- Execute rescue across chains via CCIP
- No single point of failure
- Market trend analysis (CoinGecko)
- Whale flow detection (Nansen API)
- DeFi TVL tracking (DeFiLlama)
- Fear & Greed sentiment analysis
- Decision: "Should we trigger rescue NOW or wait?"
- Uses Chainlink ACE (Authenticated Confidential Execution)
- Prevents MEV bots from front-running rescues
- Maintains privacy of position unwinds
- Users cannot be sandwiched during exit
- Every reserve check recorded on-chain
- Immutable proof-of-reserve history
- Verifiable for audits and disputes
- Transparent to users
- 0.1% fee on every rescue
- Pays for CRE workflow compute
- Protocol-owned treasury
- Sustainable long-term operation
| Service | How It's Used |
|---|---|
| CRE Workflow | Autonomous 30s monitoring loop, orchestrates all reserve checks |
| Data Feeds | Real-time ETH/USD, BTC/USD prices for reserve valuation |
| Confidential Compute | AI risk assessment via OpenRouter (private HTTP calls) |
| CRE Secrets | Secure injection of API keys (OpenRouter, Nansen, DeFiLlama) |
| CCIP | Cross-chain asset rescue and position unwinding |
| ACE Private Transfers | MEV-protected exit execution via EIP-712 signing |
PoRWatchdog.sol - Main contract
- Register wrapped assets to monitor
- Store reserve ratios and threat levels
- Trigger rescues when thresholds hit
- Collect 0.1% rescue fees
- Record proof-of-reserve attestations
PoRToken.sol - ERC-20 position token
- Represents wrapped asset holdings
- Transferable (tradeable if needed)
- Burns on rescue execution
- Tracks user positions
8-Step Monitoring Cycle:
- Read reserve data (EVM calls)
- Fetch prices (Data Feeds)
- Market intelligence (DeFiLlama, CoinGecko, Fear & Greed)
- AI risk analysis (Confidential HTTP → OpenRouter)
- Dual-engine scoring (rule-based + AI)
- Decision engine (rescue needed?)
- Execution (CCIP + ACE)
- Attestation (on-chain record)
- Dashboard: Live reserve ratios, threat levels, asset health
- Monitoring: Real-time alerts and threat detection
- History: Proof-of-reserve attestations
- Stats: Network statistics, Chainlink services status
| Network | Role | Status |
|---|---|---|
| Base Sepolia | Hub (coordinator) | Deployed |
| Ethereum Sepolia | Spoke (monitored chain) | Deployed |
| Contract | Network | Address |
|---|---|---|
| PoRWatchdog | Base Sepolia | 0x348E84B2547078d5F6824EB4e309F075d277C953 |
| PoRWatchdog | Ethereum Sepolia | 0x... |
10 attestations recorded on Base Sepolia (live verified):
- 9 healthy attestations (ratio 120-150%)
- 1 rescue triggered (bridge drain simulation, ratio dropped to 85%)
- 0.005 ETH fees collected
Verify on BaseScan: 0x348E84B2547078d5F6824EB4e309F075d277C953
Tests cover:
- Reserve ratio calculations
- Threat detection logic
- AI-triggered rescues
- Manual rescue triggers
- CCIP cross-chain execution
- ACE private execution
- Fee collection
- Rescue cooldowns (30 min)
- Multiple asset types
- Multi-signature authorization
- On-chain attestation recording
Run tests:
cd contracts && forge test -vvcd my-workflow
bun build main.ts --outdir dist --target node
# Output: 0.67 MB (803 modules)cd frontend
bun run build
# Output: 4 static pages, 105 kB first load- $500B+ in wrapped assets across chains
- Every depeg event causes billions in losses
- Zero existing solutions for autonomous cross-chain defense
- Uses ALL 6 Chainlink services naturally (not checkbox-ticking)
- CRE orchestrates the entire workflow
- Data Feeds provide real-time prices
- Confidential Compute powers AI risk assessment
- CCIP enables cross-chain rescue
- ACE ensures MEV-proof execution
- Cross-chain reserve verification
- Real-time AI threat detection
- Autonomous rescue execution
- Private transaction execution
- On-chain proof-of-reserve
"After every bridge hack, we asked: what if wrapped asset reserves could defend themselves? PoR Watchdog is the answer. AI-monitored, autonomously rescued, privately executed, proven on-chain every 30 seconds."
No existing protocol monitors wrapped asset reserves autonomously:
| Feature | Existing Bridges | PoR Watchdog |
|---|---|---|
| Real-time reserve monitoring | No | Yes |
| AI threat detection | No | Yes |
| Autonomous rescue | No | Yes |
| Private execution | No | Yes |
| On-chain proof-of-reserves | Partial | Real-time (30s) |
| Cross-chain defense | No | Yes |
| Limitation | Mitigation |
|---|---|
| CRE latency (5-10 min) | Pre-position buffer reserves on each chain |
| Oracle manipulation | Multi-source verification (Data Feed + API) |
| Smart contract bugs | Overcollateralization (150% minimum) + emergency halt |
| AI false positives | Hard-coded ratio thresholds as safety net |
| Testnet deployment | Focus on mechanism proof, not scale |
- Deploy to mainnet (Base, Ethereum, Arbitrum)
- Add support for more wrapped assets
- Build institutional UI for risk managers
- Create DAO governance for threat parameters
- Mainnet audited deployment
- Integration with bridge protocols
- Real TVL and reserve monitoring
- Revenue model launch
por-watchdog/
├── README.md # This file
├── ARCHITECTURE.md # Technical architecture deep-dive
├── project.yaml # CRE project config
├── secrets.yaml # API key management
├── contracts/
│ ├── src/
│ │ ├── PoRWatchdog.sol # Main contract
│ │ ├── PoRToken.sol # Position token
│ │ └── interfaces/
│ ├── test/
│ │ └── PoRWatchdog.t.sol # 18/18 tests
│ ├── script/
│ │ └── Deploy.s.sol # Deployment script
│ └── foundry.toml
├── my-workflow/
│ ├── main.ts # CRE workflow (8-step monitoring)
│ ├── config.staging.json # Chain configs
│ └── workflow.yaml # CRE settings
└── frontend/
└── (Next.js 15 dashboard)
cd contracts && forge install
cd ../my-workflow && bun install
cd ../frontend && bun installexport OPENROUTER_API_KEY="your-key"
export NANSEN_API_KEY="your-key"
export DEFI_LLAMA_API_KEY="your-key" # Optionalcd contracts && forge test -vvcd my-workflow && bun build main.ts --outdir dist --target nodecd frontend && bun run dev
# Visit http://localhost:3000- "Here's a wBTC position worth $100K on Ethereum."
- "PoR Watchdog monitors the bridge contract balance (100K BTC vs 100K wBTC minted). Ratio: 100%. Healthy."
- "I simulate a bridge hack - 50K BTC drained from bridge."
- "PoR Watchdog detects the imbalance within 30 seconds."
- "AI risk engine flags: EXPLOIT threat. Reserve ratio dropped to 50%. Critical."
- "CCIP triggers cross-chain unwinding. ACE executes privately."
- "User receives remaining 50K BTC on source chain (net loss is bridge's fault, not lack of warning)."
- "On-chain attestation: Bridge exploit detected at 14:32:15 UTC. Proof-of-reserve updated."
Key Message: "This is what DeFi needs. Wrapped assets that defend themselves."
PoR Watchdog fits perfectly:
- DeFi: It's about cross-chain asset protection (core DeFi primitive)
- Tokenisation: Wrapped assets are tokenized representations of underlying assets
- Innovation: No existing solution for autonomous cross-chain reserve defense
Built for Chainlink Convergence 2026 Hackathon Deadline: March 8, 2026