How It Works

End-to-End Flow

Every 60 seconds
      │
      ├─ Chainlink Data Feed ──► ETH/USD price
      ├─ DeFiLlama API ────────► Lido TVL
      ├─ DeFiLlama API ────────► Aave TVL
      └─ DeFiLlama API ────────► MakerDAO TVL
                │
                ▼
      Compute Systemic Risk Index
      (weighted score 0–100)
                │
                ▼
      VaultSentinel.setRiskScore(score)
                │
         ┌──────┴──────┐
    score < 70     score ≥ 70
         │                │
         ▼                ▼
    Vault ACTIVE    EMERGENCY triggered
    (no action)     → return ALL funds
                    → block new deposits

---

Step-by-Step

Step 1 — Data Collection

The CRE workflow fetches four data points simultaneously:

• ETH/USD price from the official Chainlink aggregator on Ethereum mainnet

• Lido TVL, Aave TVL, MakerDAO TVL from DeFiLlama's protocol API

Step 2 — Risk Computation

A JavaScript compute step calculates the Systemic Risk Index using a weighted formula:

Signal	Weight
ETH price drop from $3,500 baseline	30%
Lido TVL drain from $10B baseline	25%
Aave TVL drain from $8B baseline	25%
MakerDAO TVL drain from $6B baseline	20%

Score is always an integer 0–100.

Step 3 — On-Chain Write

The CRE workflow calls VaultSentinel.setRiskScore(score) via an eth-transaction step, signed by the authorized CRE wallet.

Step 4 — Smart Contract Response

The contract evaluates the score:

• Below threshold (70): Updates lastRiskScore, emits event, no further action

• At or above threshold: Calls _executeEmergency() → sweeps all ETH and ERC20 balances back to every depositor

Step 5 — Frontend Update

The GuardAI dashboard reads vaultState and lastRiskScore on-chain via wagmi. The Risk Gauge updates, and an EMERGENCY banner appears if triggered.

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User Journey

User connects wallet
        │
        ▼
Browse Pools → Select asset → Deposit
        │
        ▼
Funds held in VaultSentinel
        │
   ┌────┴─────────────────┐
   │                      │
Score stays < 70    Score reaches ≥ 70
   │                      │
Earn yield (APY)    Funds auto-returned
Continue normally   Wallet balance restored