Security Policies

1. Overview

SWELL adopts a hybrid model that combines the strengths of both decentralized and centralized approaches, aiming to provide diverse usability and high liquidity. Security remains the top priority throughout the SWELL ecosystem. This document outlines the security policies and operational guidelines that govern SWELL.

2. Core Principles

1. Transparency SWELL promotes transparent operations via open-source development and smart contract reviews, facilitating early detection of fraud or vulnerabilities.

2. Defense in Depth Multiple security layers (smart contract reviews, wallet security measures, network monitoring, etc.) are deployed to mitigate risks, avoiding reliance on a single defensive mechanism.

3. User Empowerment Users are educated on best practices—address management, private key protection, and awareness of risky behaviors—to ensure safe interaction with the protocol.

4. Continuous Improvement Security is not static. Ongoing audits, bug bounty programs, and community feedback are actively integrated to strengthen defenses over time.

3. Scope of Security

1. Smart Contracts & Protocol

   • Automated testing and thorough reviews are conducted on SWELL smart contracts.

   • Additional checks are performed before and after significant upgrades to eliminate critical bugs or risk factors.

2. Hybrid Model Coordination

   • Architecture that links decentralized (DEX) components with centralized services (liquidity management, certain custody aspects) is carefully monitored.

   • Capital flows and API interactions between these modules are safeguarded to prevent unauthorized access or malicious behavior.

3. Wallet & User Interface

   • Secure connections and encrypted communications (TLS) are enforced on official frontends (web UI, mobile apps, etc.).

   • Users receive guidance on recognizing official domains and wallet extensions to avoid phishing sites.

4. Network Infrastructure

   • DDoS protection, firewalls, and other measures are in place for servers and node operations.

   • Backend logs and alerts enable swift detection of abnormal traffic.

4. Audits & Testing

1. Continuous Integration & Automated Testing

   • Changes to the codebase trigger automated unit and integration tests.

   • Each pull request is checked to ensure no adverse impact on existing functionalities.

2. Bug Bounty Program

   • A reward program is offered to white-hat hackers who discover vulnerabilities.

   • This community-driven approach encourages collaborative security enhancement.

5. Incident Response

1. Monitoring & Alerts

   • The network and key smart contract operations are monitored 24/7. Any suspicious transactions or irregularities trigger alerts.

   • If immediate action is required, temporary functional restrictions or partial deactivation of hybrid components may be performed.

2. Post-Incident Review

   • After any incident, root cause analysis and preventative measures are shared with the community, and lessons are integrated into future updates.

   • A transparent report is provided regarding user impact.

6. User Best Practices

• Wallet Security

  • Do not share private keys or recovery phrases with anyone.

  • Be wary of suspicious links or fake wallets.

• Phishing & Scam Alerts

  • Clear guidelines on how to access official sites, social media, and GitHub repositories are provided to reduce counterfeit risks.

  • Hardware wallets or two-factor authentication are recommended.

• Regular Updates

  • Check official channels for security notifications when new features or UI elements are introduced.

  • Keep software-based wallets or browser extensions up to date.

7. Governance & Transparency

• Safeguards against governance manipulation (e.g., risk of vote concentration, auditing voting contracts).

• Adequate discussion periods for governance proposals, allowing the community to evaluate risks before approval.

• Security-related proposals or updates are prioritized, ensuring broad community consensus.

8. Continuous Improvement

• Security is an ongoing endeavor, revisited regularly as the project evolves. SWELL continues to:

  • Periodic Audits: Perform routine evaluations and security checks several times a year

  • Upgrade Paths: Provide clearly communicated security enhancements with each release

  • Community Feedback: Review issues reported on forums and GitHub to address concerns promptly