Implement Shadow Slashing Rules for Identity Staking

[erichfi]

Implement Slashing Rules for Identity Staking

Objective:
Implement a slashing rule to maintain the integrity and fairness of the Passport Identity Staking system by penalizing staking between wallets funded by the same Externally Owned Account (EOA).

Tasks:

1. Identify Funding Patterns:

   • Track and analyze the funding sources of all wallets participating in staking.
   • Identify common EOAs funding multiple wallets.

2. Create Script for Entity Assignment:

   • Develop a script to automate the identification of wallets funded by the same EOA.
   • Update the list of entities (wallets) regularly based on their funding sources.

3. Data Extraction:

   • Extract wallet funding data from Redshift.

4. Data Analysis and Identification:

   • Use Deepnote to analyze the extracted data and identify wallets funded by the same EOA.

5. Entity List Update:

   • Update the entity lists based on the analysis results.

6. Automation and Regular Updates:

   • Implement a cron job to automate the entire process, ensuring that the entity lists are updated at regular intervals.

Future Enhancements:

• Analyze and potentially implement additional heuristics to enhance the robustness of the slashing mechanism.
• Consider more sophisticated analysis of transaction patterns.
• Explore machine learning models to detect fraudulent behavior.
• Gather and incorporate community feedback for additional slashing criteria.

[erichfi]

Open Questions

• How do we handle undetermined centralized exchanges? Should we have a specific question around this in the appeals process?
• How often do we run this job and do we run it across all stakers or cohort based etc?

Plan

• For now maybe just shadow implement the system
• based on the analysis, figure out whether we do appeals before we actually slash or slash before we accept the appeals?