Maia DAO - Ulysses - Oxsadeeq's results

Introduction:

Ulysses is a Liquidity Cross-chain protocol designed to facilitate seamless cross-chain interactions while mitigating associated risks. This report provides an analysis of Ulysess strengths and weaknesses. Strengths: Cross-Chain Liquidity: Ulysses effectively addresses the issue of fragmented liquidity. Users and applications often face the challenge of converting their assets into the native format of a specific blockchain to interact with DeFi applications. Ulysses introduces htokens, ERC20 cross-chain tokens that can be used across different chains. This innovation eliminates the need for constant conversion, enhancing user convenience and promoting liquidity across chains.

Enhanced Security: Ulysses stands out by prioritizing security. The protocol employs a proven-safe application for cross-chain interactions. This robust security framework builds trust among users, a crucial factor for the success of any blockchain project.

Weaknesses and Recommendations:

Dependency Risk: Ulysess reliance on a single cross-chain model presents a potential single point of failure. To address this risk, the protocol should consider implementing a multi-model approach. This entails integrating alternative cross-chain solutions such as Axelar or Chainlink(CCIP). By diversifying dependencies, Ulysses can enhance its resilience to unforeseen events, ensuring uninterrupted protocol functionality.

Recommendation: Develop a strategy for seamlessly switching between cross-chain models in emergency scenarios. This strategy should define specific triggers, criteria, and processes for transitioning to alternative cross-chain solutions. Regularly evaluate and update these alternatives to remain agile and adaptive. Lack of an Emergency Mode: Ulysses current design lacks an emergency switch mechanism. This is a critical oversight as it leaves the protocol vulnerable to catastrophic events like hacks or dependency failures.

Recommendation: Implement an emergency mode with a clearly defined activation process. Consider incorporating a decentralized governance system that allows the community or protocol stakeholders to initiate the emergency mode. The emergency mode should include safeguards to protect user funds and protocol integrity during crisis situations. Centralized Authorization Approach: The codebase implementation utilizes a strict authorization approach, which carries centralization risks. To promote decentralization and ensure more inclusive governance and decision-making within the protocol, it's advisable to transition towards a more decentralized approach.

Recommendation: Introduce decentralized governance mechanisms, such as DAOs (Decentralized Autonomous Organizations), that allow token holders and stakeholders to participate in decision-making processes. This shift towards decentralization can enhance transparency, inclusivity, and the resilience of the protocol.

Time spent:

67 hours