#LiquidityLayer

Case Study: Securing a First-of-Its-Kind Liquidity Layer on the Canton Network for Tradecraft

Tradecraft, an automated liquidity layer incubated by Obsidian Systems, has completed a comprehensive security audit of its infrastructure on the Canton Network. The protocol functions as an automated market maker designed specifically for regulated financial markets, requiring specialized security assessments due to its reliance on the Daml smart contract language. Because Daml lacks extensive audit precedent, Tradecraft engaged Halborn to conduct a security review that evaluated the protocol's authorization boundaries and settlement semantics within the native Daml execution model. Halborn performed a systematic assessment of pool state, fee logic, and settlement windows, treating the protocol as an interconnected system rather than isolated modules. This engagement established a repeatable security workflow for the Canton ecosystem, ensuring that all identified vulnerabilities were remediated and independently re-verified before the project's conclusion. By securing its core settlement logic, Tradecraft aims to provide a robust foundation for institutional asset issuers and builders to access on-chain liquidity. This development is significant for the RWA market as it demonstrates the maturation of security standards for specialized, privacy-focused financial networks. The successful audit positions Tradecraft to scale its liquidity infrastructure as institutional adoption of the Canton Network continues to grow.

halborn.com·2h ago