LazyOtter Risk Monitoring employs specialized bots, developed based on risks identified during the Risk Evaluation phase, to vigilantly monitor both on-chain transactions and off-chain activities in the DeFi space. The monitoring encompasses two main areas:

  • On-Chain Transactions: Observing all on-chain activities to detect any anomalies or suspicious actions.

  • Off-Chain Activities: Keeping an eye on off-chain developments, such as news about project teams, financial backers, and governance, to provide a holistic view of the project's status.

Alerts generated by LazyOtter are categorized into three levels of severity - Low, Medium, and High according to the Risk Matrix, each with a distinct response strategy:

  • Low and Medium Severity Alerts: The primary objective for these alerts is to keep users informed about the protocol's latest status. This includes interpreting on-chain data and monitoring off-chain activities. Users are promptly notified of these alerts, but no further action is taken by LazyOtter beyond this notification..

  • High Severity Alerts: When a high-risk threat is detected, the main goal is to protect users' assets. LazyOtter immediately initiates an Emergency Withdrawal, ensuring funds are secured as quickly as possible, acting much faster than any manual withdrawal process.

LazyOtter Risk Monitoring doesn’t just alert; it proactively engages in safeguarding investments by providing timely information and taking swift action when it matters most.


"Stay alert, stay safe" – this is especially true in the fast-moving world of DeFi. Changes happen quickly, and if you're not watching closely, it can be risky. For many people, especially if they're not tech experts, DeFi can be confusing. Many don't know what to watch for, how to understand the data, or how to set up tools like security bots. Plus, not everyone has the time to always check on their investments. That's where LazyOtter's Risk Monitoring & Alerts comes in, making things easier and less stressful.

LazyOtter Risk Monitoring is made for everyday users:

  • Real-Time Updates: We gather and explain on-chain data as it happens, so users always know what's going on.

  • Stay Informed Easily: Forget constantly checking social media or news. Our bots watch off-chain activities and let users know about important updates or news.

  • Quick Action When Needed: If there's a big risk, we don't just send an alert; we take action to keep users' funds safe right away.

With LazyOtter Risk Monitoring, users don't just react to what's happening in DeFi; they stay one step ahead. It's like having a 24/7 security guard for investments.


Our risk monitoring tool utilizes bot detectors that combine past alerts from various underlying base bots under a common address to generate high-precision alerts. By consolidating past alerts from base bots, the system effectively separates signal from noise. Our alerts are divided into 2 types: Rule-based and Machine learning

Rule-based alerts

LazyOtter's risk monitoring tool operates on a rule-based system, an approach that uses a predefined set of rules to trigger alerts. The system is designed around specific indicators such as Anomaly transactions, Operation, Market and Malicious address. Drawing on the insights and practices of influential cybersecurity projects such as Forta, these indicators are fine-tuned to detect abnormalities and potential threats within the DeFi space. This rule-based system ensures consistent, reliable, and real-time threat detection, making it a powerful tool in the dynamic landscape of decentralized finance (DeFi).

A rule-based system is characterized by its capacity to standardize decision-making, leading to consistent results. The rules encapsulate expert knowledge and insights, ensuring the accuracy of threat identification. This system can quickly process vast amounts of data, enabling real-time threat identification and allowing users to swiftly react, minimizing potential damages.

Moreover, rule-based systems boast scalability and adaptability. As DeFi evolves and new threats emerge, the rules can be modified or new ones can be added. This adaptability is invaluable in the fast-paced DeFi environment, ensuring that the risk monitoring tool remains effective and relevant.

Machine learning alerts

A Secret Weapon in Development...

Do you recall our seemingly indolent yet intellectually formidable engineer, 0Xavier? His interests are not confined to DeFi development; he is also deeply fascinated by AI and machine learning. Why? He views them as the quintessential catalysts to an optimally automated future – a world where sophisticated AI servants and bots handle mundane tasks, leaving humans to focus on higher-order thinking and creative endeavors.

Under his leadership, our brilliant engineers are also building a robust AI that continuously scans the blockchain, analyzing every transaction and predicting potential hacks. This involves Deep Learning algorithms as its core technology, an innovative method using neural networks to learn from both structured and unstructured data.

Structured data, readily extractable from transactions, includes elements such as gas price, value, and timestamps. These parameters, though straightforward, provide a wealth of information about transactional patterns that can be exploited by our model. However, an effective approach should not stop there. We acknowledge the significant importance of unstructured data in determining transactional intent and behavior, such as associations between transactions, event logs, and contract contents. The idea is to use sophisticated Natural Language Processing (NLP) techniques and graph-based learning methods to mine valuable insights from this unstructured data, enabling a more nuanced and holistic analysis of blockchain activity and their intents.

LazyOtter AI's primary objective is to refine the precision of detecting malevolent transactions and contracts, thereby enhancing the timeliness and accuracy of potential risk predictions. By minimizing false positives, we aim to reduce the frequency of unnecessary alarm triggers. This approach, synergistically combined with rule-based detections, significantly fortifies the security of yield farming vaults and strategies.

0Xavier is committed to this mission and tirelessly working to make significant breakthroughs in this space. Stay tuned, as we hope to share exciting progress with you soon.

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