A monitoring framework is a post-launch set of metrics, each with a target, a warning threshold, and an action threshold, plus an escalation protocol. The metrics come from what the audit and simulation showed actually breaks the model, so the team watches the right numbers instead of vanity charts.
Price is the last indicator to move, so a team that watches price instead of the mechanism is reading the symptom hours or days after the damage starts.
How it works
Construction starts from the audit risk register, not a generic industry dashboard. If the adversarial pass found six critical failure vectors, the framework carries at least one metric per vector, calibrated to give early warning before the vector becomes a live incident.
A metric like total value locked is a vanity chart unless the simulation showed a specific TVL floor below which incentives become uneconomic and exit acceleration begins. The simulation is what converts a generic metric into a threshold with a mechanism behind it.
How it is calculated
Each metric carries three values: target (the state the model is designed for), warning (the level where the team reviews but does not intervene), and action (the level that triggers a pre-authorized response such as a circuit breaker, an emergency vote, or a reserve drawdown). The action response must be pre-authorized during design, because convening a discussion every time a threshold is crossed is always too slow for how fast on-chain conditions move.
Example
For a collateralized borrowing protocol, the distribution of health factors across active loans is a model-derived metric. The warning threshold might trigger when the 10th percentile falls below 1.3, and the action threshold when it falls below 1.1, kicking off partial liquidations or a borrowing pause. These numbers come from the simulation, not from intuition.
See Tokenomics Audit Services for how this applies in practice.
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