PROTOCOL IQ // LAYER 2

While Layer 1 (Token Audit) dissects individual smart contracts, Protocol IQ is designed for macro-risk analysis. It evaluates the structural and reputational health of entire decentralized ecosystems — DEXs, lending markets, yield aggregators, and derivatives protocols.

A token’s contract may have clean bytecode, but if the protocol behind it has a history of exploits, a deserted codebase, or anonymous deployers, the investment remains high-risk. Protocol IQ connects all these data points into a unified forensic profile.

The Intelligence Gathering Process

When a protocol is queried by name, slug, or seed address, Sentinacle executes a multi-phase automated investigation:

Phase 1: Ecosystem Discovery

Sentinacle maps the protocol’s on-chain footprint via DefiLlama integration:

• Total Value Locked (TVL) — current and historical trajectory.
• Cross-chain deployment mapping (native chain vs. bridge-extended deployments).
• Liquidity flow analysis — is TVL growing, stable, or draining?

A protocol holding $500M in TVL but showing consistent outflows over 30 days is a qualitatively different risk from one with growing deposits.

Phase 2: Digital Identity Resolution

A smart contract is only as reliable as its maintainers. Sentinacle automatically resolves the protocol’s primary GitHub repositories and documentation.

• Commit frequency and recency — is the codebase actively maintained?
• Open issues and unresolved vulnerabilities in the repository.
• Transparency of contributors — anonymous vs. identified core team.

A protocol with $50M TVL and a dead repository with the last commit from 18 months ago is a systemic red flag regardless of the contract’s individual safety.

Phase 3: On-Chain Deployer Reputation

Sentinacle traces the origin deployer wallet and cross-references its history:

• Prior contracts deployed from the same address — outcomes of previous projects.
• Interaction with known obfuscation infrastructure (Tornado Cash).
• Time between wallet creation and first deployment — fresh wallets deploying large protocols are a risk signal.

Phase 4: Audit Trail Verification

The engine cross-references known 3rd-party security audits (CertiK, Hacken, Trail of Bits, OpenZeppelin) associated with the protocol, verifying their existence and recency.

Phase 5: Core Token Audit

Every Protocol IQ report includes a full Layer 1 Token Audit on the protocol’s primary governance or utility token — ensuring the financial core of the ecosystem is not structurally compromised.

Output Metrics

A Protocol IQ report synthesizes this data into a unified intelligence profile:

1. Protocol Reputation Score — A macro score distinct from the micro Token Audit Trust Score. Weighted across TVL trajectory, audit history, deployer reputation, and codebase activity.
2. Audit Trail — Verified 3rd-party audit records with dates and auditor reputation.
3. TVL & Liquidity Trajectory — Real-time and historical liquidity flow analysis.
4. Deployer Intelligence — Wallet history and cross-project reputation.
5. Core Token Security — Full Layer 1 findings on the protocol’s primary token.
6. Sentinacle AI Verdict — Forensic synthesis of all signals into a human-readable risk assessment.

Supported Input Formats

Protocol IQ is available to PRO tier subscribers.

⚠️ Protocol IQ provides intelligence about the structural and reputational risk of a protocol. It does not constitute an investment recommendation. TVL can be manipulated and audit reports are point-in-time snapshots. Always verify independently.