Authors: Erkan Alaydinov, Lyuboslav Lyubenov - Kann Audits
Status: Submitted
Created: 2026-05-17
Abstract
This proposal introduces a two-part initiative by Kann Audits to strengthen the security posture of the Canton ecosystem.
First, a Security Partnership Program providing ongoing security advisory, prioritized audit support, and incident response assistance for builders across the ecosystem.
Second, a Development Fund request for DAML-native AI security tooling designed to enable automated vulnerability detection, continuous monitoring, and improved security analysis of Canton smart contracts and applications.
Together, these initiatives establish a durable ecosystem security layer that reduces developer friction, improves protocol safety, and supports the secure scaling of applications built on Canton.
As adoption of Canton increases, builders face growing demand for specialized security expertise and scalable review infrastructure. Traditional audits alone are insufficient to support continuous development cycles. This proposal addresses this gap by combining human-led security expertise with AI-assisted analysis and continuous monitoring.
The combined initiative focuses on:
- Continuous security advisory and hands-on support for Canton builders
- Prioritized and discounted manual audit services for Canton-native projects
- Incident response readiness for critical vulnerabilities and exploits
- DAML-native AI security tooling for automated vulnerability detection
- Continuous monitoring and security lifecycle coverage for deployed protocols
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The Security Partnership Program (including manual audits, advisory support, and incident response) is provided independently of the Development Fund request and is available immediately to Canton builders.
The Development Fund request applies solely to the DAML-native AI security tooling and monitoring, which will be delivered through milestone-based development and ecosystem rollout.
1. Objective
Kann Audits proposes establishing a shared ecosystem security infrastructure layer for Canton through a combination of human expertise, manual audit capability, incident response, and AI-powered tooling.
Specifically, Kann Audits commits to:
- Build and maintain DAML-native AI security tooling tailored for Canton smart contracts and applications
- Provide continuous security advisory support for ecosystem builders
- Deliver discounted and prioritized manual and AI-assisted audit services
- Maintain incident response readiness for ecosystem security events and critical vulnerabilities
- Provide continuous monitoring and security review capabilities for active protocols
- Support ecosystem adoption through security workshops and developer enablement
2. Implementation Mechanics
The proposal introduces a two-layer ecosystem security model:
Layer 1 — Ecosystem Security Partnership
Kann Audits will act as a long-term security partner for Canton builders by providing:
- Security architecture consultations during development
- Smart contract and protocol design reviews
- On-demand security guidance for teams building on Canton
- Secure development best practices and guidance
Manual Audit Incentive Program:
- 30% discount on first audit engagement for Canton-native projects
- 10% discount on future audit engagements
- Priority audit scheduling for Canton ecosystem builders
- 12 months of post-audit remediation and consultation support
Incident Response Coverage:
- Rapid vulnerability triage
- Exploit mitigation guidance
- Coordination support during critical security events
Layer 2 — DAML AI Security Audit Infrastructure
Kann Audits will develop a DAML-native AI security analysis system tailored specifically for Canton architecture.
The tooling will include:
- Static analysis for DAML smart contracts
- Semantic vulnerability detection using AI reasoning models
- Pattern recognition for authorization and contract design flaws
- Cross-contract dependency and state-flow analysis
- Automated security report generation (human-readable outputs)
- Continuous monitoring for deployed protocols
Operational AI Coverage Model:
- Ecosystem allocation: up to 7 protocols per month covered under continuous AI monitoring
- Each allocated protocol includes AI-assisted scanning with human validation
- Structured security reports including severity classification and remediation guidance
For protocols outside allocated coverage, additional AI-assisted scans and extended monitoring will be available as a discounted service to ensure sustainable operation of the program.
3. AI Security Impact
AI-assisted analysis improves the security lifecycle of Canton applications by shifting detection earlier and enabling continuous monitoring.
- Faster time to secure deployment by identifying vulnerabilities during development rather than late-stage audits
- Reduced audit bottlenecks by enabling AI-driven baseline detection while manual auditors focus on complex logic
- Improved cost efficiency by reducing re-audit cycles, bug bounty exposure, and post-deployment fixes
- Continuous security coverage through ongoing monitoring of deployed protocols as code evolves
4. Alignment with Canton Priorities
Security & Resilience:
- Combined AI-assisted and manual vulnerability detection for DAML applications
- Continuous protocol monitoring infrastructure
- Incident response readiness framework
Developer Experience:
- Integrated security feedback throughout development lifecycle
- Reduced friction in accessing audit and advisory support
- Faster iteration through early vulnerability detection
Ecosystem Growth:
- Standardized security layer for all builders
- Improved baseline security across applications
- Increased readiness for institutional-grade deployments
5. Public Good Justification
Our offering is designed to support Canton builders across the full lifecycle of application development.
From early-stage idea validation and secure architecture design, to best-practice guidance during implementation, to continuous AI-assisted and manual security reviews during development, to discounted audits before deployment, and finally to post-deployment monitoring and ongoing incident response and advisory.
This creates a continuous security pathway that combines automated analysis, expert manual review, and real-time response capabilities, ensuring applications in the Canton ecosystem are designed, deployed, and maintained with a consistently high security standard.
The DAML AI tooling contributes ecosystem-wide value by improving detection of common vulnerability patterns and strengthening overall security maturity across Canton applications.
6. Sustainability
After the grant period, the infrastructure will be maintained through:
- Continued operation of AI security tooling as part of Kann Audits’ Canton security stack
- Paid manual audit engagements with ecosystem participants
- Optional enterprise security services for larger deployments
- Ongoing incident response and advisory services as a retained ecosystem capability
7. Funding Request
$30,000 in CC tokens
The funding supports:
- Development of DAML-native AI security analysis system
- Deployment of continuous scanning infrastructure for Canton protocols
- Ecosystem-wide monitoring coverage (up to 7 protocols per month)
- Improvement of vulnerability detection across AI + manual audit workflows
8. Milestones and Deliverables
Milestone 1: DAML AI Security System Design and Validation
- Delivery: 6–7 weeks
- Build and validate DAML-aware security analysis system
- Define Canton-specific vulnerability models
- Benchmark detection quality on reference codebases
Milestone 2: Ecosystem Pilot
- Delivery: 4–6 weeks after M1
- Onboard up to 7 protocols into monitoring program
- Deliver AI-assisted + human-validated reports
- Establish feedback loop for model refinement
Milestone 3: Expansion and Ecosystem Report
- Delivery: 6–8 weeks after M2
- Continue monitoring across allocated protocols
- Expand audit engagements
- Publish anonymized ecosystem security insights report
- Update DAML vulnerability pattern library
Acceptance Criteria
- Demonstrated working DAML-aware security analysis capability
- Successful execution of ecosystem pilot across real protocols
- Delivery of structured vulnerability reports with actionable findings
- Active use of system in both AI-assisted and manual audit workflows
- Completion of ecosystem insights report with validated findings
- Effective incident response readiness demonstrated in pilot phase
9. Success Metrics
- Number of Canton protocols reviewed via AI + manual audits
- Vulnerabilities detected prior to deployment
- Reduction in audit turnaround time
- Adoption rate of security tooling across ecosystem
- Number of builders supported through advisory and audits
- Successful incident response engagements
10. Why This Matters
This proposal establishes a continuous security layer for the Canton ecosystem that integrates security directly into the development lifecycle.
It moves the ecosystem from isolated, point-in-time audits toward a hybrid model combining AI-assisted analysis, expert manual review, and incident response capability.
The result is a more resilient builder environment where security is continuous, scalable, and embedded throughout development rather than treated as a final step.
11. Motivation
This proposal is motivated by the lack of an end-to-end security support layer in the Canton ecosystem that covers the full lifecycle of application development.
Today, security support is fragmented across early-stage advisory, manual audits, and post-deployment monitoring.
We aim to close this gap by introducing a unified security pathway that supports builders from initial design through development, audit, deployment, and ongoing operational security.
About Kann Audits
Kann Audits is a top tier Web3 security audit company trusted by leading projects, providing comprehensive security reviews and expert guidance to secure critical protocols across the blockchain ecosystem.
We have helped secure over $1.5B+ in TVL.
We specialize in security audits across multiple ecosystems and technologies, including Solidity, Rust, Move, Go, ZK systems, off-chain infrastructure, and DAML.
Our core service is manual security auditing, supported by AI-assisted security tooling (Kann AI Labs) that enhances vulnerability detection, continuous monitoring, and security review workflows.
