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Description

Fuel aims to be a complete optimistic rollup with low transaction costs, high speed and high throughput.

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Risk summary

Technology

Fraud proofs ensure state correctness

After some period of time, the published state root is assumed to be correct. For a certain time period, usually one week anyone can submit a fraud proof that shows that the state was incorrect.

  • Funds can be stolen if there is no one that checks the published state. Fraud proofs assume at least one honest and able validator.

  1. Background - Fuel documentation

All data required for proofs is published on chain

All the data that is used to construct the system state is published on chain in the form of cheap calldata. This ensures that it will always be available when needed.

  1. Background - Fuel documentation

Operator

The system has a centralized sequencer

While proposing blocks is open to anyone the system employs a privileged sequencer that has priority for submitting transaction batches and ordering transactions.

  • MEV can be extracted if the operator exploits their centralized position and frontruns user transactions.

  1. Architecture: A High-Level View - Fuel documentation
  2. Mainnet deployment parameters - Fuel documentation

Users can force any transaction

Because the block production is open to anyone if users experience censorship from the operator they can propose their own blocks which would include their transactions.

  • Users can be censored if the operator refuses to include their transactions and users lack resources to propose blocks themselves.

  1. Architecture: A High-Level View - Fuel documentation

Withdrawals

Regular exit

The user initiates the withdrawal by submitting a transaction on L2. When the block containing that transaction is finalized the funds become available for withdrawal on L1. The process of block finalization usually takes several days to complete. Finally the user submits an L1 transaction to claim the funds. This transaction requires a merkle proof.

  1. Withdraw.yulp#L40 - Fuel documentation

Smart Contracts

The system consists of the following smart contracts:

This contract stores the following tokens: DAI, USDC, USDT.