🔐Security & Upgrade Framework

SquareStrategy’s ERC-1001 protocol is engineered for autonomy, immutability, and verifiable safety. No team wallets, no custody, no external control — only code, mathematics, and transparent state.

Security is achieved not through permission, but through architecture.


⚙️ 1 Core Security Principles

Principle
Description

Code > Custody

All actions are executed on-chain. No private keys can intervene or extract funds.

Modular Isolation

Each module — Pool, Execution, Burn — is independent. A malfunction in one cannot affect the others.

Event Transparency

Every buy, relist, burn, or allocation emits a public event visible on explorers and dashboards.

Immutable Parameters

Critical constants (fee ratio, burn logic, thresholds) are locked at deployment.

Versioned Evolution

New ERC-1001 releases can be deployed without altering live contracts. Existing Strategies remain functional.


🧩 2 Security Flow Diagram

Figure 3.5 — Security Architecture Flow Every transaction passes through isolated logic layers with transparent state reporting. No off-chain custody, no administrative intervention, no discretionary access.


🔐 3 Contract Isolation & Failsafes

  • Controller Contract: routes calls and validates logic. Holds no ETH directly.

  • Pool Contract: stores ETH safely until threshold conditions are met.

  • Execution Engine: interacts with marketplaces under strict gas and slippage constraints.

  • Burn Module: operates exclusively on its dedicated balance stream.

If any call fails or returns invalid data, the protocol reverts automatically — funds remain frozen within the contract until the next valid state transition.


🔁 4 Upgrade Path

ERC-1001 follows a versioned deployment model rather than mutable proxies.

  • Each upgrade = a new contract version (e.g., ERC-1001-V2).

  • Older Strategies remain operational and immutable.

  • Collections may voluntarily migrate to newer versions, preserving decentralization and forward compatibility.

No live contract can be edited, and no stored data can be rewritten.


🧮 5 Audit & Verification

To guarantee reliability and transparency:

  • Independent Security Audits before every mainnet release.

  • Public Code Verification on block explorers.

  • Continuous Stress Testing against gas spikes, marketplace outages, and flash-loan exploits.

  • Event-based tracking dashboards for real-time analysis of pools, burns, and executions.

Every line of defense is measurable — nothing operates in the dark.


🧩 6 Summary

  • Fully autonomous, non-custodial architecture.

  • Immutable core logic and isolated modules.

  • Deterministic execution — no human override.

  • Transparent events and public audits.

  • Versioned evolution without breaking legacy deployments.

SquareStrategy’s ERC-1001 framework represents a new security paradigm for NFT protocols: a system where code is law, transparency is built-in, and trust is replaced by verifiable design.

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