Blockchain Security Training Risk Mitigation 2

Question 1

Which control most directly reduces the risk of a single compromised key draining a treasury wallet?

Accepted Answer

Multi-signature (multisig) wallet requiring multiple approvers

Answer

Multisig spreads signing authority so no single compromised key can move funds alone.

Question 2

A protocol wants to limit losses if an exploit is discovered after deployment. Which mechanism best mitigates this risk?

Accepted Answer

A pausable/circuit-breaker function controlled by a guardian

Answer

A circuit breaker lets defenders halt vulnerable functions before more funds are lost.

Question 3

What is the primary risk-mitigation purpose of a timelock on protocol governance actions?

Accepted Answer

It gives users time to react or exit before a change takes effect

Answer

A timelock delays execution, giving the community a window to detect and respond to malicious changes.

Question 4

Which practice best mitigates oracle manipulation risk in a DeFi lending protocol?

Accepted Answer

Using a time-weighted average price (TWAP) from multiple sources

Answer

TWAP across multiple liquid sources makes price manipulation far more expensive.

Question 5

A team holds an admin upgrade key. What mitigation reduces insider and single-point-of-failure risk for that key?

Accepted Answer

Placing the key behind a multisig with a timelock

Answer

A multisig plus timelock removes single-person control and delays any malicious upgrade.

Blockchain Practice Test