Sequencer-Enforced Loss Finality Minimization for Layer 2s
DeFi has lost $77B+ to exploits. Current solutions are reactive: by the time a war room assembles, funds have already bridged out. Insurance models are evasive and only pay after finality; audits miss novel logic.
The Gap: There is no pre-committed authority to intervene between detection and loss finality.
RLP transforms L2 sequencers into Proactive Guardians. It formalizes the sequencer's existing authority over state transitions into a deterministic, opt-in security layer.
1. Competitive Detection (<1 min)
Independent detectors stake ETH to compete on signals. They compete on speed & accuracy; first to signal correctly (within 500ms time window) wins the largest payout. High-confidence signals (80%+) trigger immediate action.
2. Surgical Containment
The sequencer freezes exits for affected contracts only. The rest of the L2 remains operational. No chain halt, no ecosystem disruption.
3. Bridge Coordination
The sequencer alerts bridges (Across, Hop, canonical L2→L1) to escalate finality (+4 hour delay) on flagged withdrawals. This closes the escape hatch before attackers can finalize exits.
Result: If funds stay on L2 (which containment ensures), fraud proofs automatically revert state. No governance votes, no multisigs.
Protocols or individual users pay market-driven premiums (0.3%–1.2% APR based on risk). Initial pricing for new protocols is discovered via detector competition. Detectors bid the lowest APR they will accept to monitor.
Premium Allocation: