Aegis Use Cases: Smart Contract Event Listening

Lossless
4 min readSep 22, 2023

Lossless Aegis is already widely recognized among Web3 professionals and enthusiasts for its ability to detect malicious on-chain activity. Yet beyond smart contract security, not every user is utilizing its complete suite of functionalities and features.

“Aegis Use Cases” uncovers the hidden potential of our AI-powered tool. In this article series, we explore how individual investors and project teams can leverage our flagship product for maximum utility, from setting up alerts on team wallet transactions to automatically blocking flash-loan attacks, tracking Total Value Locked changes, and backtesting past security breaches.

This article will detail how Aegis can be used for smart contract event listening, enabling stakeholders to maintain oversight over crucial operational, governance, and economic activities of the monitored addresses.

Key Takeaways

Events are bits of information emitted by blockchain transactions, signaling that a significant state change has occurred in the deployed smart contract.

Lossless Aegis continuously listens for selected on-chain events emitted by monitored addresses, tracking substantial changes in governance structure, token movements, and much more.

Aegis’ events-based alerts are highly customizable and facilitate Web3 transparency, early detection of anomalies, and informed decision-making.

What are Smart Contract Events?

Events serve a crucial purpose in smart contract development. Often referred to as “logs” on the Ethereum platform, events may be thought of as checkpoints or milestones that record critical bits of information during a smart contract’s operational cycle.

Developers normally want to track smart contract operations and set up certain conditions to emit signals. An “event” is simply a log entry that contains all the relevant details about some substantial change in the smart contract state.

Why are Events Important?

Events provide a real-time glimpse into contract operations and are thus invaluable for spotting bugs, unexpected outcomes, and other unintended smart contract behaviors. Developers can debug contract interactions, validate test outcomes, and use emitted data to locate bottlenecks.

Events also help document the entire history of actions performed, thus greatly enhancing the transparency and traceability of smart contracts. Auditors can examine the contract state at different points in time, tracing the sequence of actions performed during a transaction and identifying potential attack vectors.

Crucially, events help streamline communication between smart contracts and user interfaces. Since external applications can listen or subscribe to these events, their users can be presented with timely information without having to repeatedly query the blockchain. Pertinent data related to their transactions or critical smart contract changes can be retrieved seamlessly.

Event Listening: Use Cases

When you set up a trigger, Aegis begins to actively listen for the selected event emitted by the monitored address. The exact nature of the available events will vary based on the smart contract type, with the most common ones being associated with token movements and changes in address ownership.

Almost every token contract, for example, will have some variation of the Approve and Transfer events, which are associated with setting the spender’s allowance and tokens being moved from the account. There are also some similarities in the structure of the Admin or Owner Change events, which follow a similar pattern across different smart contract types.

Although there are other event types that follow some naming convention or common industry standard, they account for just a small fraction of all the different events you will find in the Web3 space. Many are simply created to suit the individual needs of project developers and the exact nature of their smart contract solutions.

Nevertheless, the possibilities for creative event listening are numerous. Individual traders and fund managers may wish to track events associated with smart contracts within their investment purview. Various sensitive governance or fee structure changes, and transfer events may be associated with malicious activity and wide token price swings.

Project teams may wish to set up SMS alerts for their mission-critical contracts — including changes in admin privileges, contract upgrades, multi-sig requirements, liquidity withdrawals, and other time-sensitive events. That way, project teams will be notified immediately, even if offline, and be able to take urgent steps to mitigate risks.

“With Aegis V2, event tracking has become boundlessly versatile. The scope of what’s possible in the realm of smart contract monitoring is only limited by one’s imagination. We’ve paved the way for everyone to craft the tailor-made monitoring solution their vision dictates.”

– Domantas Pelaitis, Lossless Technology Lead.

Feel free to experiment with event monitoring by registering an account at aegis.lossless.io.

About Lossless

Lossless is a trendsetter in Web3 security architecture. Our solutions empower projects to protect their communities from smart contract exploits and the associated financial loss.

The Lossless protocol wraps ERC-20 standard tokens in an additional layer of transactional security, providing project creators with a fail-safe against malicious exploits. Transactions flagged as malicious are frozen and can be reverted subject to an investigation.

Aegis, our latest flagship product, offers automated threat monitoring and firewall-like features. Project teams can utilize its real-time alerts and zero-integration monitoring capabilities to identify possible threats before they turn into exploits.

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Lossless

World’s first unrivalled exploit identification and mitigation tools, designed to foolproof web3 from malicious activity.