Oracle Architecture & MEV Protection
HOOKED Exchange is built with security-first architecture to protect traders and liquidity providers from value-extracting bots and predatory strategies. Our system combines oracle-driven smart detection with a permissioned MEV module to stop bad actors, recycle captured MEV, and reward genuine participants.
How HOOKED Keeps You Safe
- Smart detection: Continuously monitors price feeds, pool volatility, and trading patterns in real time.
- Dynamic fees: Suspicious trades pay higher fees, making attacks unprofitable; normal users keep low, fair fees.
- Automatic protection: Runs silently in the background — no setup or extra steps required.
- MEV recycling: Captured MEV (Maximal Extractable Value) is redirected back to voters, governance, and liquidity providers.
Think of it as a security guard for your trades — one that not only stops attackers but turns their attempts into rewards for the community.
What HOOKED Protects Against
| Attack Type | How Bad Actors Profit | How HOOKED Stops Them |
|---|---|---|
| Front-running | Bots jump ahead of your transaction to take your profit | Detects timing-based manipulation and raises attacker fees |
| Sandwich attacks | Bots trap your trade between buys/sells to move price against you | Flags abnormal price swings and penalizes suspicious routing |
| Price manipulation | Actors artificially move pool prices for gain | Oracle-driven price checks adjust fees dynamically to remove incentives |
| Exploitative liquidity | LPs pull liquidity before swaps to farm emissions without exposure | MEV Module blocks unfair emission farming and rewards real LPs |
Under the Hood: Oracle-Driven Security
- Price Oracles: Watch for large deviations between internal pools and trusted external price feeds.
- Volatility Triggers: Detect sudden, abnormal market movement and increase attacker costs.
- Behavioral Analysis: Flags trading patterns consistent with MEV bots or opportunistic liquidity pulling.
When risks are detected, the system dynamically adjusts fees — attackers pay more, honest users stay unaffected.
The HOOKED MEV Module
Traditional DEXs leak MEV to outside bots. HOOKED flips that dynamic:
- Permissioned engines: Only approved, auditable engines can execute MEV strategies.
- On-chain & atomic: Every operation is verifiable and safely integrated with Sentinel for optimal execution.
- Revenue recycling: Captured MEV flows back into voter incentives, governance, and liquidity provider rewards, increasing capital efficiency.
- Anti-abuse emissions: Prevents short-term “one-tick” LP farming so rewards go to real, trade-supporting liquidity.
This turns what was once a cost to LPs into a shared source of protocol revenue — creating a fairer, more sustainable DEX environment.
Audits
To ensure reliability, safety, and trust for all participants, HOOKED is undergoing multiple third-party audits and reviews. All audit reports are made publicly accessible.
| Auditor / Entity | Scope of Audit Them | Status / Findings |
|---|---|---|
| Cyfrin | Full protocol smart contracts: governance, emissions, fee logic | Audit complete: minor issues remediated |
Additional Security Measures
- Permissioned MEV Executors: Only authorized executors can perform MEV capture or backrun operations, reducing risk of abuse.
- Atomic Transaction Execution: Key operations are atomic, ensuring state consistency and removing opportunities for race conditions.
- On-Chain Verifiability: All rewards, votes, and token flows are transparent and auditable on-chain.
- Exit Mechanism: Enforces vesting and reward forfeiture for early exits, which limits rapid churn and discourages abusive behavior.