ProofSentinel

What it is
ProofSentinel is a continuous Proof-of-Reserves (PoR) monitoring system. It tracks reserve ratios in near real time, detects when they cross warning/critical thresholds, and can automatically trigger on-chain safeguards (e.g. pausing withdrawals) via Chainlink CRE.

• How it works Protocols register with reserve wallets and a liability source (e.g. ERC20 totalSupply, Merkle tree, or external API).
• A Chainlink CRE workflow runs on a schedule (e.g. every 5 minutes). It calls the ProofSentinel backend API (GET /monitoring/:protocolId), which fetches on-chain reserves and liabilities, computes the reserve ratio, and returns a status (healthy / warning / critical).
• When status is warning, the workflow posts an alert to the backend. When status is critical, it also calls the ReserveMonitor smart contract on Sepolia (e.g. pauseWithdrawals()) via the CRE DON.
• A Next.js dashboard shows protocols, live monitoring snapshots, and alerts.
  What problem it solves
  Traditional PoR is periodic and manual, leaving a “detection gap” between audits. ProofSentinel closes that gap with automated, scheduled checks and programmable on-chain responses (pause withdrawals, emit alerts), reducing solvency risk and improving user protection.

• Smart contracts: Solidity ^0.8.19, Hardhat, deployed on Sepolia (ReserveMonitor at 0xb80D135fb054ce3b27Ef67Eca016DBACff0F89B3). Role-based access: admin and oracle (CRE DON) can trigger safeguards.
• Chainlink CRE: Workflow in TypeScript using @chainlink/cre-sdk — CronCapability, ConfidentialHTTPClient (to call the backend API), and EVMClient (to call ReserveMonitor). Workflow is simulated via CRE CLI and can be deployed to the CRE network.
• Backend: Express (TypeScript/Bun), ethers.js for on-chain reads (reserves, liabilities), risk engine (ratio vs thresholds), safeguard service (on-chain calls), PostgreSQL (Neon) + Prisma.
• Frontend: Next.js 14, Radix UI, Recharts, Tailwind CSS.
• CRE workflow integrates blockchain (Sepolia) with an external API (ProofSentinel backend) and demonstrates simulation via CRE CLI and optional live deployment.