Cryptocurrency introduces usability challenges by requiring users to manage signing keys. Popular signing key management services (e.g., custodial wallets), however, either introduce a trusted party or burden users with managing signing key shares, posing the same usability challenges. TEEs (Trusted Execution Environments) are a promising technology to avoid both, but practical implementations of TEEs suffer from various side-channel attacks that have proven hard to eliminate.

This paper explores a new approach to side-channel mitigation through economic incentives for TEE-based cryptocurrency wallet solutions. By taking the cost and profit of side-channel attacks into consideration, we designed a Stick-and-Carrot-based cryptocurrency wallet, CrudiTEE, that leverages penalties (the stick) and rewards (the carrot) to disincentivize attackers from exfiltrating signing keys in the first place. We model the attacker’s behavior using a Markov Decision Process (MDP) to evaluate the effectiveness of the bounty and enable the service provider to adjust the parameters of the bounty’s reward function accordingly.