10. Security Considerations

Lock Enforcement

• On-Chain Validation: All lock schedules validated on-chain

• Time-Based Checks: Uses Solana Clock for accurate time tracking

• Unlock Calculations: Precise calculations prevent premature unstaking

• Platform Locks: Special enforcement for platform stakes

Reward Security

• Accumulation Precision: Uses high-precision arithmetic (basis points)

• Overflow Protection: All calculations checked for overflow

• Reward Debt Tracking: Prevents double-claiming of rewards

• Multiplier Validation: Ensures multipliers are within valid ranges

Voting Security

• Participation Tracking: Accurate tracking of votes cast vs. total proposals

• Tier Calculation: Validated tier assignments based on participation

• Bonus Application: Voter bonuses applied correctly to reward calculations

• Sybil Resistance: Voting power tied to staked amount

Platform Lock Security

• Minimum Stake: Enforced minimum stake for platform registration

• Lock Duration: Fixed 5-year schedule with monthly linear unlock cannot be shortened

• Unlock Schedule: Linear unlock calculated precisely per month

• Status Tracking: Platform status tied to lock schedule

General Security

• Access Control: All functions verify user ownership

• Account Validation: PDA derivation validated for all accounts

• State Consistency: Pool totals updated atomically with user accounts

• Error Handling: Comprehensive error codes for all failure modes

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APY Projections

Conservative Scenario ($100M Annual Volume)

Total Fees (0.4%):          $400,000
Staker Fees (0.1%):         $100,000

Distribution:
├─> Protocol Treasury:      $100,000
├─> Market Creators:        $100,000
├─> PATH Stakers:           $100,000
└─> Platforms:              $100,000

Staker APY (50M staked, $0.10 PATH price):
Base: $100,000 / (50M × $0.10) = 2% APY
With 2.2x multiplier: 4.4% APY
With 2.2x + 20% voter bonus: 5.28% APY

Base Case ($1B Annual Volume)

Total Fees (0.4%):          $4,000,000
Staker Fees (0.1%):         $1,000,000

Staker APY (50M staked, $0.10 PATH price):
Base: $1M / (50M × $0.10) = 20% APY
With 2.2x multiplier: 44% APY
With 2.2x + 20% voter bonus: 52.8% APY

Optimistic Scenario ($10B Annual Volume)

Total Fees (0.4%):          $40,000,000
Staker Fees (0.1%):         $10,000,000

Staker APY (50M staked, $0.50 PATH price):
Base: $10M / (50M × $0.50) = 40% APY
With 2.2x multiplier: 88% APY
With 2.2x + 20% voter bonus: 105.6% APY