Overview

This note details how Clearstar executes on-chain transactions to deploy, manage, and withdraw capital. It is a part of the Capital Allocation Framework.

Execution is the final operational stage of the capital allocation process. By this point, the opportunity has passed General Due Diligence, Asset Due Diligence, Protocol Due Diligence, and Blockchain Due Diligence, achieved a passing tier through the APB Risk Rating, and had its target addresses registered in ForDeFi through Whitelisting. Execution is where capital moves on-chain, and accordingly, it is where the consequences of error or compromise are most immediate.

The core principle of this stage is risk minimisation at every step: dual senior analyst sign-off on every transaction, mandatory transaction simulation, verified frontends, and post-execution verification. Every safeguard in the preceding stages (due diligence, whitelisting, portfolio construction) converges here to ensure that the transaction submitted is the transaction intended.

<aside> <img src="/icons/warning_red.svg" alt="/icons/warning_red.svg" width="40px" />

Dual sign-off on all transactions Every transaction, without exception, requires approval from two senior analysts in ForDeFi before it is broadcast. This applies to deposits, withdrawals, claims, rebalances, and any other on-chain interaction. ForDeFi enforces this at the policy level.

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flowchart TD
    A[Transaction required] --> B[Senior analyst 1 builds, reviews, and proposes transaction]
    B --> C[ForDeFi simulates transaction]
    C --> D{Simulation successful?}
    D -->|No| E[Halt and investigate]
    D -->|Yes| F[Senior analyst 2 reviews simulation and approves]
    F --> G[Transaction broadcast]
    G --> H[Post-execution verification]

    style A fill:#4A90D9,stroke:#2E6BA6,color:#fff
    style C fill:#E8A838,stroke:#B8862D,color:#fff
    style E fill:#D9534F,stroke:#A94442,color:#fff
    style F fill:#E8A838,stroke:#B8862D,color:#fff
    style G fill:#5BB85B,stroke:#3D8B3D,color:#fff

Frontend Security

Frontend hijacking is one of the most common attack vectors in DeFi. A compromised frontend can present a legitimate-looking interface while routing transactions to malicious contracts. Clearstar mitigates this risk through strict frontend hygiene.

Bookmarking

Every frontend that Clearstar plans to interact with must be bookmarked in the browser before first use. Analysts must always navigate to protocol frontends via these bookmarks, never through search engines, social media links, or messaging apps. This eliminates the risk of landing on a phishing domain that closely resembles the legitimate one.

Domain Verification

Before interacting with a frontend, the analyst verifies:

• The domain matches the bookmarked URL exactly
• The connection is secured via HTTPS with a valid certificate
• The domain has not recently changed registrar or nameserver (where feasible to check)

<aside> <img src="/icons/warning_red.svg" alt="/icons/warning_red.svg" width="40px" />

Never use unbookmarked frontends If a protocol's frontend URL changes (e.g. due to a domain migration), the new URL must be independently verified through official protocol channels before it is bookmarked and used. An analyst must never follow a redirect from an old domain without verification.

</aside>

Direct Contract Interaction