Protocol Logic Extraction

Protocol logic extraction involves isolating the specific rules and parameters that govern a financial protocol's operation from its deployed codebase. This includes identifying how collateralization ratios, interest rate curves, and liquidation triggers are calculated in real-time.

By extracting this logic, analysts can model the protocol's behavior under extreme market stress or simulated economic scenarios. This is a foundational step in performing quantitative finance stress tests and ensuring that the system's economic design remains solvent.

It allows for the creation of independent simulators that mirror the protocol's internal decision-making processes. This process is essential for developers and risk managers who need to verify that the protocol's governance parameters align with its stated economic goals.