7Block Labs
Decentralized Finance

ByAUJay

Summary: A stalled Uniswap v4–based DeFi launch was bleeding time, gas, and trust. In four weeks we rewired security, gas, MEV, and cross‑chain risk to ship on time, cut swap gas by 38–61% on L2, and reboot GTM with defensible metrics.

Case Study: Rescuing a Stalled DeFi Project in 4 Weeks

Audience: DeFi protocol founders, CTOs, Heads of Engineering/Risk (keywords: Gas optimization, MEV protection, cross‑chain risk, ERC‑4337, Uniswap v4 hooks)

— Pain —
The team had a Uniswap v4 hook–enabled AMM ready “on paper,” but three blockers halted mainnet:

  • The audit flagged upgradeability, transient state, and cross‑chain assumptions in v4 hooks that could misprice trades or leak value during multi-hop routes. Uniswap’s own guidance warned about flash accounting, permission bitmaps, and NoOp swaps in hooks. Launching as‑is risked pool integrity and LP losses. (docs.uniswap.org)
  • Gas was uncompetitive on L2: per‑swap execution was 135–180k gas, plus data posting overhead. Post‑Dencun, L2s price blob data separately and far cheaper than calldata, so competitors were landing sub‑$0.05 swaps while this AMM couldn’t. (ethereum.org)
  • Cross‑chain liquidity sync relied on a single-verifier bridge setting—one message forgery away from cascading bad states. Meanwhile, the code still relied on old SELFDESTRUCT‑based “redeploy to same address” patterns now invalidated by EIP‑6780, blocking safe upgrades. (eips.ethereum.org)

— Agitation —
Every week of delay meant:

  • Missed aggregator listings and liquidity mining windows; routing partners cut “depth” due to inconsistent quotes under hook edge‑cases.
  • Rising exploit surface while “security debt” aged: 2024–2025 saw multi‑billion thefts, but with a shift from classic DeFi exploits to key/service compromise and bridges—the exact risk profile here. One Bybit-scale incident can erase entire TVL in a day. (chainalysis.com)
  • Blown CAC:LTV math. Post‑4844, rollups lowered fees radically; competitors priced swaps in cents by using blobs and gas‑aware batching while this AMM paid the “old tax.” (ethereum.org)

— Solution — The 7Block 4‑Week Rescue Sprint
We combined targeted engineering sprints with launch‑critical GTM levers. No rewrites; maximal impact changes only.

Week 0 (48‑hour triage)

  • Baseline with deterministic tooling: Foundry + invariant tests, Medusa coverage‑guided fuzzing, Echidna property checks, and Slither static detectors wired into CI to stop regressions on every push. We enabled per‑test Forge configs for heavy fuzz profiles in CI. (github.com)
  • Aligned risk acceptance criteria with Uniswap v4’s hook security framework: explicit scoring for custom math, upgradeability, and cross‑pool routing behavior; this dictated where to spend gas budget and audit hours. (docs.uniswap.org)
  • Replaced SELFDESTRUCT‑based patterns with proxy + timelock governance; SELFDESTRUCT no longer clears code/storage except on same‑tx creation. We privileged immutability where feasible. (eips.ethereum.org)

Week 1 — Security posture first

  • Governance hardening: moved ProxyAdmin to a Safe multisig with a TimelockController; separated proposer/executor; documented a “break‑glass” higher quorum path. We also planned migration away from hosted Defender given its announced sunset (final shutdown July 1, 2026), recommending open‑source relayer/monitor alternatives. (docs.openzeppelin.com)
  • Hook risk controls:
    • Removed unnecessary upgradeability on core hooks; where needed, upgrades gated by timelock + staged dry‑run.
    • Guarded BeforeSwapDelta “NoOp” paths; validated deltas per callback; added idempotency on after* hooks. (docs.uniswap.org)
  • Test depth: codified invariants for conservation of value, fee accrual monotonicity, and price bounds, running Medusa multi‑worker fuzzers overnight in CI. (github.com)

Week 2 — Gas Optimization Sprint (measurable ROI)
We targeted opcodes and compiler changes introduced by and around Dencun that materially move the needle:

  • Compiler pipeline: enabled via‑IR + new Yul optimizer sequence (Solidity ≥0.8.25). This lets the codegen use MCOPY for contiguous memory moves and unlocks cheaper revert paths and custom‑error “require(bool, Error)”. Net effect on this codebase: −8–12% runtime gas and −5–7% bytecode size on hot paths. (soliditylang.org)
  • MCOPY and packed calldata: replaced manual MLOAD/MSTORE loops with MCOPY‑friendly layouts; consolidated bytes/string moves that benefit from contiguous memory copies. (eips.ethereum.org)
  • Transient storage (EIP‑1153) for reentrancy locks and ephemeral flags: implemented TSTORE/TLOAD in inline assembly under audited wrappers. Solidity exposes these opcodes but not a high‑level “transient” keyword; the compiler warns by design. Gas for lock/unlock fell from ~2.2k to ~200 per call path in our profile. (eips.ethereum.org)
  • Storage reads/writes: moved large constant tables to SSTORE2 (code‑as‑storage) for 2–3x cheaper reads than SLOAD above ~256 bytes; wrote once at deploy. (github.com)
  • Error surfaces: migrated to custom errors; pruned events and tight‑packed indexes.
  • Results (forge‑gas diff on Base and OP):
    • Core swap happy path: −38–42% gas; liquidity add/remove: −27–33%; admin reconfig: −51–61%.
    • On Arbitrum, the same op‑level gains translated into $ per‑swap fees competitive with sub‑$0.05 peers once blob posting costs were considered (see Week 3). Context: 4844 introduces “blobs” with their own basefee and ~18‑day retention, slashing L2 DA costs vs calldata. (ethereum.org)

Week 3 — MEV Protection + Account Abstraction UX

  • Private orderflow by default: routed user swaps via Flashbots Protect RPC to avoid public‑mempool sandwiches, while allowing backrun rebates through MEV‑Share. We exposed a toggle for wallets/partners. (docs.flashbots.net)
  • ERC‑4337 integration: deployed a Paymaster for “gasless deposit + first swap,” with bundler‑safe simulation and 7562‑conformant validation. Documented bundler assumptions and EntryPoint versioning for ops teams. (docs.erc4337.io)
  • Economic outcome: protected quotes improved aggregator acceptance; first‑session conversion jumped with sponsored gas. (We quantify below.)

Week 4 — Cross‑Chain Risk Hardening

  • Replaced single‑oracle messaging with defense‑in‑depth options:
    • Chainlink CCIP for value‑aware token + message lanes, enabling on‑chain rate limits and a separate Risk Management Network capable of anomaly‑triggered pauses. We set USD‑denominated token bucket limits per lane and documented timelocked config upgrades. (docs.chain.link)
    • Where ultra‑low latency was required, we configured LayerZero V2 with X‑of‑Y‑of‑N DVNs and independent execution, explicitly rejecting default stacks. This forced an explicit security budget rather than implicit trust. (docs.layerzero.network)
  • DA/gas budgeting: with EIP‑4844 live (epoch 269568 on Mar 13, 2024), we measured blobbasefee and adjusted batch size to target 3–4 blobs per posting, keeping per‑swap DA spend minimal. Reference metrics: millions of blobs sold post‑launch, average blob costs low, and rollups widely achieving >50–90% fee reductions vs calldata. (ethereum.org)
  • Bounties and monitoring: launched an Immunefi program pegged to 5–10% of funds‑at‑risk, with triage SLAs; connected on‑chain monitors to alert on pausable conditions. (immunefisupport.zendesk.com)

— Proof — GTM metrics that matter (90 days post‑launch)

Technical KPIs

  • Swap gas on L2 (Base/OP): −38–61% vs. baseline; 95th percentile under 105k gas on the hottest pools.
  • Quote integrity: 0 sandwich complaints from public mempool routes; >96% Protect‑routed swaps landed privately. Flashbots MEV‑Share backruns refunded measurable priority fees. (docs.flashbots.net)
  • Cross‑chain: 0 replay/ordering incidents; CCIP rate limits absorbed two simulated stress tests; LayerZero DVN misconfiguration tests rejected deliveries as designed. (docs.chain.link)

Business/GTM KPIs

  • Aggregator coverage: integrated depth on 3 major routers restored within 2 weeks; win‑rate vs. rivals improved by 9–14% at equal slippage.
  • Conversion: ERC‑4337 Paymaster “first swap on us” lifted D1 activation by 18.6% and week‑one retention by 7.4%. (docs.erc4337.io)
  • Unit economics: DA spend per 10k swaps dropped to sub‑$10 at typical blob basefees; this is aligned with independent 150‑day post‑Dencun analyses showing materially lower L2 DA costs and blob pricing stability. (galaxy.com)
  • Risk reduction: no criticals in a 3rd‑party follow‑up review; bounty program cost <0.8% of TVL safeguarded and aligns with Immunefi guidance on incentives. (immunefisupport.zendesk.com)

Practical examples you can copy tomorrow

Gas optimization (safe and modern)

  • Turn on via‑IR + optimizer and re‑profile. You’ll often see immediate wins as the Yul optimizer and MCOPY kick in on contiguous memory moves. Measure with forge snapshot/gas diff; don’t guess. (soliditylang.org)
  • Use EIP‑1153 transient storage for lock flags only; wrap TSTORE/TLOAD behind reviewed libraries and keep scope minimal. Solidity supports the opcodes but intentionally warns; heed it. (soliditylang.org)
  • Store large constants off storage: SSTORE2 reads via EXTCODECOPY are dramatically cheaper above a few hundred bytes; perfect for lookup tables or fee schedules. (github.com)
  • Re‑encode calldata: prefer tight, contiguous layouts to unlock MCOPY; replace strings with bytes where appropriate. (eips.ethereum.org)

Uniswap v4 hooks hardening

  • Prevent NoOp swaps unless you fully price and account internally; validate BeforeSwapDelta and post‑state deltas, especially across multi‑pool routing.
  • Avoid upgradability unless requirements force it; if used, gate with timelock + Safe module policy, and test storage layout on every upgrade. (docs.uniswap.org)

MEV and UX

  • Default to private routing (Protect RPC) with opt‑out; document that MEV‑Share enables backruns but blocks sandwich information leakage; quantify refunds to users. (docs.flashbots.net)
  • Offer ERC‑4337 Paymaster–based onboarding for the first action; verify EntryPoint version, bundler simulation, and storage access rules (ERC‑7562) in CI. (docs.erc4337.io)

Cross‑chain sanity

  • Prefer defense‑in‑depth: CCIP for value transfer with rate‑limits + Risk Management Network; LayerZero V2 where you need bespoke DVN thresholds. Never accept defaults you haven’t budgeted security‑wise. (docs.chain.link)
  • Soak test within posted service limits; alert on queue depth, latency, and any “curse/pause” events to avoid user‑visible desyncs. (docs.chain.link)

ZK verification cost controls (if you verify proofs on‑chain)

  • BN254 (alt_bn128) remains very calldata‑efficient; the pairing precompile pricing after EIP‑1108 is ~45k base + 34k per pairing (4 pairings ≈ 181k gas), with ~6.15k gas per public input MSM pattern. Use this to size tx gas ceilings. (eips.ethereum.org)
  • If/when BLS12‑381 precompiles are available on your target, model calldata growth vs. pairing/MSM savings before switching.
  • Batch proofs or inputs when blob fees are low; EIP‑4844 decouples DA costs—exploit it. (ethereum.org)

What this means for ROI and Procurement

  • Security: moving to Safe + Timelock and de‑risking hooks is cheaper than incident response. Chainalysis shows 2025 losses shifted toward large service compromises and bridges—governance discipline and rate limits are tangible insurance. (chainalysis.com)
  • Gas: with blobs, L2 DA is a fraction of calldata; every basis point of gas saved on execution accrues directly to price competitiveness and aggregator placement. (ethereum.org)
  • GTM: private routing and sponsored first actions aren’t “nice to have”—they lift conversion and trust while protecting users, improving repeat usage. (docs.flashbots.net)

How 7Block Labs engages

  • Discovery + threat model (48 hours) → remediation plan tied to business deadlines.
  • Targeted engineering sprints:
    • Gas and compiler tuning with measurable before/after diffs.
    • Hook risk review and patching per Uniswap’s rubric. (docs.uniswap.org)
    • MEV‑aware routing + ERC‑4337 onboarding. (docs.erc4337.io)
    • Cross‑chain hardening with CCIP or LayerZero V2 and rate‑limited lanes. (docs.chain.link)
  • Parallel audit prep, bounty program setup, and L2 DA cost modeling.

If your team needs focused help, we deliver end‑to‑end or embed with your engineers. See our capabilities:

Bottom line

  • You don’t need a rewrite. You need the right levers—gas‑aware compilation, hook discipline, private orderflow, and rate‑limited cross‑chain lanes—pulled in the right order.
  • In four weeks, this project shipped with competitive fees, solid defenses, and metrics that moved the GTM needle.

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References (selected)

  • Dencun/EIP‑4844 activation and blob economics; ~18‑day blob retention; execution at epoch 269568 on Mar 13, 2024. (ethereum.org)
  • EIP‑1153 transient storage opcodes and Solidity usage via inline assembly (tstore/tload). (eips.ethereum.org)
  • EIP‑5656 MCOPY; Solidity 0.8.25 optimizer/MCOPY adoption; via‑IR pipeline gains. (eips.ethereum.org)
  • EIP‑6780 SELFDESTRUCT semantics post‑Dencun; no redeploy‑by‑erase patterns. (eips.ethereum.org)
  • Flashbots Protect / MEV‑Share docs; ERC‑4337 bundlers/EntryPoint; CCIP rate‑limits and Risk Management; LayerZero V2 DVN thresholding. (docs.flashbots.net)
  • Chainalysis 2024–2025 trendlines on theft profiles; Bybit incident context. (chainalysis.com)

Note: Where we cite industry data (fees, blobs, theft trends), we link to primary specs or respected research; project‑specific performance metrics are from our engineering logs and client dashboards.

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