Kleros Integration

Kleros is a decentralized court system that has been put forth as a potential solution for the third participant of the Decision Making Body of the Hack Mitigation Protocol. Its credibly neutral game-theoretic design offers the possibility to fully decentralize the extremely subjective process of social recovery.

Central to Kleros’ security is its appeal system, which allows contested rulings to be appealed and voted on by increasingly larger groups of jurors until the ruling reaches a stable Schelling point. The flip side is that final ruling may not be reached quickly to inform a vote in the Lossless Decision Making Body within the stipulated decision time (± 48 hours).

However, in situations where the jury of the first round is sufficiently large (e.g. >=10 jurors) and are unanimous in their decision, the ruling of this first round can be assumed to be considered secure enough to inform the vote regardless of whether the ruling gets appealed to subsequent rounds. The setup can look something like this:

• A special proxy contract is written to interface with both the Lossless Governance contract and the Kleros Court (nicknamed Klerosliquid) contract. This contract is fully permissionless and trustless and can be called by anyone able/willing to put down the deposit and gas fees:

  • It has two key functions:

    • Translate a Lossless recovery request to a Kleros Court case

    • Translate the provisional results of the first round of the created court case into a potential approval request to the Lossless Decision Making Body.

• When a report is open on Lossless, users intending to invoke Kleros to play its role as 1 of the 3 voters in the Decision Making Body will call the contract with a certain ETH amount (i.e. the Kleros arbitration fee, which is paid purely to the jurors of the Kleros community for their time and effort).

• This proxy contract will then use this ETH amount to create a dispute in the Kleros Court contract, which then immediately kickstarts the arbitration process for this case with a jury of 10 jurors.

• The arbitration will take place in a Kleros court specially created for use cases like Lossless’, which allows the first ruling of the dispute to be reached within 1-2 days.

• Once the ruling of the first round has been reached, anyone can call the proxy contract to translate the Kleros Court ruling to the Lossless Decision Body:

  • The proxy contract will poll the Kleros Court to check if the ruling was unanimous for the freezing of the funds.

  • If the ruling was unanimous and in favour of freezing the funds, the proxy contract will call the Lossless Governance Contract to cast its vote.

  • If the ruling was not unanimous, the proxy contract will abstain/withhold from voting in the decision making process for this particular report.

As Kleros and Lossless are permissionless protocols, the above-mentioned solution can be implemented by any community member or user if they wish to.