Author

W. Shi

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Preprint Aug 2026

PACE: Policy-Attested Contract Execution for Safe AI Agents in Decentralized Finance

Autonomous AI agents are emerging as interfaces for decentralized finance (DeFi) actions such as swaps, lending operations, and yield management. Because these agents rely on large language models (LLMs) to plan transactions, they inherit the LLM's susceptibility to prompt injection and lack of mechanisms to bind a verifier's approval to the exact transaction ultimately submitted on-chain. We present PACE (Policy-Attested Contract Execution), a transaction-level authorization framework that interposes between an LLM-based agent and on-chain execution. PACE introduces typed transaction intents, a deterministic policy verifier, and signed Policy Decision Records (PDRs) that cryptographically bind the approved intent, policy, and simulation report to the exact execution bytes, with replay and expiration protection. A Solidity smart account enforces PDR signatures on-chain with a measured overhead of 29,826-31,822 gas. We evaluate PACE against six baselines on 40 tasks spanning four attack categories plus benign utility (2,800 trials, 10 seeds). In our deterministic sandbox, PACE achieves a 0.00 unsafe execution rate and 0.00 false-positive rate on benign tasks, compared to 0.80 for the unguarded baseline. Ablation studies identify permissive policy settings (+57.5 pp) and the touched-contract allowlist (+12.5 pp) as the dominant safety components. To test whether the same deterministic floor holds for real model outputs, the artifact additionally provides a three-model live-LLM evaluation over the full task suite with repeated runs. A mainnet-fork harness is included for archive-RPC deployments, but fork results are reported only when the corresponding artifacts are generated. These auxiliary studies are separate from, and never substitute for, the deterministic benchmark. We frame our claims as logic-level safety within a reproducible benchmark rather than deployment-ready DeFi security.

Rabimba Karanjai, Yang Lu, Richard T Williamson et al. · 0 citations

Preprint Jul 2026

Context Contamination in LLM Analysis of Network Security Logs: Poison with Passive Prompt Injection and Mitigation Evaluation

Large Language Models are increasingly deployed in Security Operations Centers for log analysis tasks including summarization, alert triage, and threat investigation. These systems ingest logs from external-facing services and process network logs as natural language contexts to generate security insights. We demonstrate that this architectural pattern introduces a critical vulnerability: adversaries can embed prompt injection payloads in log-generating fields that persist in storage and are executed when analysts query the LLM, achieving what we term passive prompt injection. We present LogInject, a systematic framework for evaluating these threats. Using LogInject-1.0, a benchmark of 12,847 log entries including 2,569 adversarial samples, we evaluate three production LLMs across four attack objectives: activity concealment, false positive generation, information exfiltration, and output hijacking. Our findings reveal an up to 88.2% attack success rate (83.4% average across models) under the baseline conditions. We introduce Context Stitching, a novel technique that fragments payloads across multiple log entries to evade stateless filters while exploiting LLM long-context reasoning, achieving a 76.4% success rate. As mitigation, we evaluate layered defenses by combining input filtering, prompt hardening, and output validation, demonstrating a 90.4% attack reduction, although 8.4% residual vulnerability persists. Our results establish that LLM-based log analysis creates an inherent confused deputy vulnerability where untrusted data and trusted instructions compete indistinguishably for model attention, requiring defense in-depth architectures and continued human oversight for security-critical decisions.

Rabimba Karanjai, Yang Lu, H. Madhavarao et al. · 1 citation