concepts

Explain onchain design misconceptions and incentive failures in smart-contract systems.

Updated Apr 8, 2026
One-click install
npx skills add https://github.com/mashharuki/flare-sample --skill concepts-mashharuki
Or copy as Structured Prompt for Agent
Please help me install this Agent Skill.
Skill: concepts
Source: https://github.com/mashharuki/flare-sample/tree/main/.claude/skills/eth-concepts
Command: npx skills add https://github.com/mashharuki/flare-sample --skill concepts-mashharuki

SYSTEM DOCUMENTATION & REQUIREMENTS

What problem does it solve?

Many builders misunderstand how onchain systems actually operate, assuming automatic execution, reliable randomness, or a willing operator; this Skill corrects those mental models and prevents design mistakes that lead to non-functional or insecure smart contracts.

Core Features & Use Cases

  • Clarifies core misconceptions such as "smart contracts run automatically" and "timers exist onchain", and explains the operational reality that every state transition requires an actor and gas.
  • Focuses on incentive design: who calls functions, why they would, and how to align rewards so a system can run permissionlessly (hyperstructures, liquidations, LP incentives).
  • Covers hard technical pitfalls including deterministic randomness, oracle failure modes, approval patterns, and tradeoffs between admin-operated services and decentralized protocols.
  • Use Cases: onboarding new onchain developers, reviewing protocol designs for missing incentives, teaching product teams why certain features won't self-execute.

Quick Start

Ask the assistant to "Analyze my protocol design for missing incentive paths, list who must call each state transition, and propose permissionless fixes."

Frequently Asked Questions about concepts

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
Why do my Ethereum smart contracts not execute automatically when conditions are met?

Smart contracts do not run automatically because every onchain state transition requires an external actor and gas. You must design explicit incentive paths so users or bots are rewarded for triggering functions like liquidations or settlements permissionlessly.

How do I design permissionless incentives for my DeFi protocol?

Design permissionless incentives by analyzing who must call each state transition and aligning rewards so the system functions without admin intervention. This involves mapping operator roles, validating trigger mechanisms, and ensuring gas costs are covered by protocol rewards like LP incentives.

Is onchain randomness safe to use for gaming or lottery smart contracts?

Onchain randomness is deterministic and unsafe against manipulation. You must use safe randomness approaches, typically integrating external oracles, while accounting for oracle failure modes and delay patterns to prevent attackers from predicting outcomes.

What are common smart contract design mistakes when integrating oracles?

Common oracle design mistakes include assuming immediate data availability, ignoring oracle failure modes, and lacking fallback state-machine logic. You must analyze oracle update incentives and implement remediation steps to handle stale or manipulated data securely.

Can I use timers or scheduled execution directly in my smart contract logic?

Timers do not exist natively onchain, so smart contracts cannot schedule execution independently. You must replace timer assumptions with permissionless trigger mechanisms, incentivizing external actors to execute state transitions when time-based conditions are met.