- Test theoretical attack vectors in a real-world environment using live agents and mainnet code
- Validate your assumptions and downstream impacts with high scale, multi-agent simulations
- Trust that what you’re building will withstand market-based attacks in any environment
Chaos Labs’ unique two-pronged simulation engine
Chaos has developed a novel, hybrid approach that leverages the advantages of multiple agent-based simulation solutions while providing accurate risk analysis and data-driven decisions:
- Chaos Labs EVM Simulations - These execute on a proprietary, python-based Chaos-constructed EVM.
- “On-chain” Simulations - These execute on Rust Ethereum Virtual Machine (rEVM), an EVM written in rust that is focused on speed and simplicity, on an optimized version of Anvil.
Chaos Labs EVM Simulations
The Chaos Labs EVM is a python-based agent-based simulation environment. Every simulation initializes with a data-sync phase where new or historical protocol data is extracted and loaded from the blockchain. Chaos Labs’ EVM simulations are highly performant, showing 250x latency and CPU improvements over their on-chain (below) counterparts. Chaos Labs EVM simulations are compelling, allowing us to narrow our search space significantly and quickly.
Chaos Labs On-Chain Simulation
DeFi applications execute on blockchains that offer data-rich, transparent environments. The complete visibility and transparency of DeFi applications significantly dwarf their traditional finance counterparts, where financial applications and instruments execute in opaque, private settings. The ability to fork blockchains gives us transparency and data readability out of the box. Forks allow us to obtain a complete snapshot of the runtime environment at a given time (block height). Using blockchain forks enables on-chain agents to interface with native blockchain protocols throughout the simulation identically to how they will be interfaced in production.
Chaos Labs on-chain simulations are initiated and orchestrated by a simulation executor that utilizes a novel agent and scenario model to interact with a dedicated blockchain fork. Chaos Labs simulation executor is composed of (1) an optimized, customized Anvil fork that supports our intensive high throughput requirements and simulation length beyond what is ordinarily possible; and (2) a simulation engine that orchestrates the different actors and models interacting with the Fork can collect data points and metrics for diagnosis. With an rEVM environment and executor orchestrator toolkit, we can granularly control the state of any blockchain fork.
On-chain simulation case studies
Aave stETH:ETH Depeg Simulation
In the Summer of 2022, stETH depegging from ETH was a major concern. Chaos Labs used its on-chain simulation engine to understand the impact of this divergence on Aave by selling into the Curve pool to start a run on liquidations.
MakerDAO
In this series, we use the Chaos Cloud and proprietary on-chain simulation engine to test the MakerDAO protocol through real-world scenarios that have yet to occur in practice. From these, the core units could better test the auction and liquidation mechanisms under development prior to deployment.
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