🚨 Problem Statement: The 2025–2026 Smart Wallet & AI Agent Drain Crisis
Across r/ethereum, r/defi, r/ethdev, r/ledgerwallet, and Ethereum Magicians, developers and users consistently cite opaque transaction signing, over-privileged token approvals, and fragile AI agent wallet permissions as the #1 unsolved barrier preventing safe Web3 adoption.
Real-time 2025–2026 on-chain threat intelligence reveals how severe this crisis has become:
- 63% of
EIP-7702Delegations Are Malicious Sweepers (USENIX Security 2026 / SlowMist / Wintermute): Following Ethereum's May 2025 Pectra upgrade (Type 0x04SetCodetransactions), 63% of all analyzedEIP-7702authorization tuples pointed to attacker-controlled sweeper contracts (0xef0100 || sweeperAddress), with 97% on Ethereum Mainnet sharing copy-paste drainer bytecode. Worse, signing an authorization withchainId = 0allows attackers to replay a single off-chain signature across Ethereum, Base, Arbitrum, and Optimism simultaneously. - $370 Million Lost in January 2026 Alone; 38% via
Permit2(CertiK & Scam Sniffer): Because users grant one-time ERC-20 approvals to canonicalPermit2(0x000000000022D473030F116dDEE9F6B43aC78BA3), attackers only need a single off-chain EIP-712PermitSinglesignature withamount = uint160.maxto silently drain 100% of a wallet's USDC/USDT without an on-chain approval prompt. - 3.4 Million/Month Post-Fusaka Address Poisoning Attacks (Blockaid): Following Ethereum's December 2025 Fusaka upgrade that lowered L1/L2 gas costs, automated vanity lookalike dust transfers (
0x71C9...489A) surged 5.5x from 628,000 (Nov 2025) to 3,400,000 in January 2026, causing $62.25M in losses across just two victims who copied poisoned counterparties from their transaction history. ERC-7715AI Agent Tool Overreach: As users connect autonomous DeFi agents viaERC-7715(wallet_grantPermissions), indirect prompt injections hidden inside token metadata or IPFS DAO governance proposals trick agents into firingtransfer,setApprovalForAll, orPermit2signatures inside their active session window.
🛡️ Solution: ScopeForge Web3 (ChainForge)
ScopeForge Web3 solves this crisis by enforcing strict Separation of Concerns between Compile-Time Intent Reasoning and Deterministic On-Chain Runtime Enforcement:
AI never sits in the runtime path. AI is used strictly offline at compile time to translate human DeFi intent into an immutable 4-byte selector bitmap, an
ERC-7715wallet_grantPermissionsJSON-RPC manifest, and a deployed SolidityERC-7710Caveat Enforcer (ScopeForgeCaveatEnforcer.sol) that validates everyUserOperationdeterministically in $O(1)$ gas.
Core Capabilities & Unique Value
- Pre-Signature EVM Calldata &
EIP-7702Authorization Tuple Decompiler:- Slices raw hex transactions (
0x04ef0100SetCode tuples,0x2b67b570Permit2.permitSingle,0xa9059cbbpoisoned transfers,0x38ed1739Uniswap swaps) into byte-offset ABI words ([0x00..0x04],[0x04..0x24],[0x24..0x44]). - Flags
chainId = 0cross-chain replay traps,uint160.maxinfinite allowances, and Post-Fusaka vanity lookalike addresses before a signature is produced, displaying the exact USD blast radius and Solidity revert error.
- Slices raw hex transactions (
- Least-Privilege
ERC-7715Session Policy Compiler:- Classifies 10 authentic EVM Smart Account & DeFi protocol capabilities into 3 strict tiers:
ERC-7715 ALLOW(Autonomous Execution):readPoolSlot0(0x3850c7bd),quoteExactInputSingle(0xc6a5026a),simulateUserOp(0x19822f7c),swapExactTokensForTokens(0x38ed1739capped at <= $500).SAFE MULTISIG COSIGN(Human Guardian Gate):supplyAaveCollateral(0x617ba037),permit2ApproveSpender(0x2b67b570).HARD ON-CHAIN REVERT(0xDenied):authorizeEIP7702SetCode(0x04ef0100),transferTreasuryAsset(0xa9059cbb),setApprovalForAllNFT(0xa22cb465),castGovernanceVote(0x56781388).
- Strips 60% to 70% of dangerous wallet authority before a session key is ever deployed.
- Classifies 10 authentic EVM Smart Account & DeFi protocol capabilities into 3 strict tiers:
- On-Chain Solidity
ERC-7710Caveat Enforcer (contracts/ScopeForgeCaveatEnforcer.sol):- Implements the canonical
ICaveatEnforcer.beforeHookinterface for MetaMask Delegation Toolkit (ERC-7710) andERC-7579Modular Smart Accounts. - Inspects
Permit2(0x000000000022D473030F116dDEE9F6B43aC78BA3) assembly calldata offsets[64..160]to blockuint160.maxallowances (ScopeForge__Permit2InfiniteAllowanceBlocked). - Blocks
EIP-77020x04ef0100delegations (ScopeForge__EIP7702SweeperBlocked) and verifiesERC-20.transferrecipients against the delegator'strustedCounterpartiesmapping (ScopeForge__AddressPoisoningDetected).
- Implements the canonical
- Side-by-Side Exploit Replay & 12-Vector Web3 Red-Team Studio:
- Replay 3 real-world poisoned on-chain triggers side-by-side (Unrestricted EOA: $392,500 Drained vs. ScopeForge
ERC-7710Smart Account: $0.00 Lost) and run a 12-vector adversarial stress test suite (100% Containment,0 Escapes).
- Replay 3 real-world poisoned on-chain triggers side-by-side (Unrestricted EOA: $392,500 Drained vs. ScopeForge
- Built-In 7-Slide Interactive Pitch Deck & Artifact Exporter:
- One-click export of compiled
.sol(ERC-7710Enforcer),.json(ERC-7715wallet_grantPermissions), and.yamlpolicy artifacts, plus an embedded 7-slide presentation deck (ScopeForge_Web3_Pitch_Deck.pdf).
- One-click export of compiled
⚙️ Technology Stack
- Smart Contracts & Blockchain Protocols: Solidity
^0.8.24(contracts/ScopeForgeCaveatEnforcer.sol),ERC-7710(ICaveatEnforcer),ERC-7715(wallet_grantPermissions),ERC-7579Modular Execution Calldata,ERC-4337EntryPoint v0.7,EIP-7702(0x04SetCode), UniswapPermit2(0x0000...78BA3), Aave V3, OpenZeppelin Governor. - Frontend & Decompiler Studio: Next.js 16 (App Router), React 19, TypeScript 5, Tailwind CSS v4, Lucide Telemetry Icons.
- Compile-Time Intent Engine: Google Gemini 2.5 Flash (
@google/genai) paired with a deterministic EVM 4-byte selector AST fallback compiler. - Automated Verification Suite: Node.js native test runner via
tsx --test(tests/scopeforge.test.ts— 6 automated verification suites + 12 red-team exploit scenarios).
🔗 Key Links & Deliverables
- GitHub Repository: https://github.com/venkatasai-kadamati/scopeforge
- Solidity ERC-7710 Enforcer Contract: https://github.com/venkatasai-kadamati/scopeforge/blob/main/contracts/ScopeForgeCaveatEnforcer.sol
- 7-Slide Presentation Deck (PDF): https://github.com/venkatasai-kadamati/scopeforge/blob/main/ScopeForge_Web3_Pitch_Deck.pdf
Built With
- account-abstraction
- defi
- eip-7702
- erc-4337
- erc-7710
- erc-7715
- ethereum
- google-gemini
- nextjs
- react
- solidity
- tailwindcss
- typescript
- web3

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