diff --git a/contagion-trap/ContagionTrap.sol b/contagion-trap/ContagionTrap.sol
new file mode 100644
index 0000000..3fdc222
--- /dev/null
+++ b/contagion-trap/ContagionTrap.sol
@@ -0,0 +1,85 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+import "./interfaces/ITrap.sol";
+
+interface IUniswapV2Pair {
+    function getReserves() external view returns (
+        uint112 reserve0,
+        uint112 reserve1,
+        uint32 blockTimestampLast
+    );
+}
+
+/**
+ * ContagionTrap
+ * - data[0] is newest snapshot (Drosera convention)
+ * - shouldRespond returns (true, "") when we want to call pause()
+ *
+ * - compute naive liquidity = reserve0 + reserve1
+ * - compute average of previous snapshots (exclude newest index 0)
+ * - require avgPrev > MIN_LIQUIDITY_FLOOR to avoid tiny pools
+ * - trigger when newest < THRESHOLD * avgPrev (threshold = 0.5)
+ */
+contract ContagionTrap is ITrap {
+    address public immutable NEIGHBOR_DEX_POOL;
+    address public immutable LENDING_PROTOCOL;
+
+    struct PoolSnapshot {
+        uint256 liquidity;
+        uint256 blockNumber;
+    }
+
+    uint256 public constant THRESH_NUM = 1;   // (THRESH_NUM / THRESH_DEN) = 0.5
+    uint256 public constant THRESH_DEN = 2;
+    uint256 public constant MIN_LIQUIDITY_FLOOR = 1_000_000; // adjust if your pool units differ
+
+    constructor(address _neighborDex, address _lendingProtocol) {
+        NEIGHBOR_DEX_POOL = _neighborDex;
+        LENDING_PROTOCOL = _lendingProtocol;
+    }
+
+    /// collect: called by operators to snapshot neighbor pool
+    function collect() external view override returns (bytes memory) {
+        (uint112 r0, uint112 r1, ) = IUniswapV2Pair(NEIGHBOR_DEX_POOL).getReserves();
+        uint256 liq = uint256(r0) + uint256(r1);
+        return abi.encode(PoolSnapshot({ liquidity: liq, blockNumber: block.number }));
+    }
+
+    /// shouldRespond: Drosera passes an array of snapshots (data[0] newest)
+    function shouldRespond(bytes[] calldata data)
+        external
+        pure
+        override
+        returns (bool shouldTrigger, bytes memory responseData)
+    {
+        // Need at least newest + one previous snapshot
+        if (data.length < 2) return (false, bytes("insufficient_history"));
+
+        PoolSnapshot memory newest = abi.decode(data[0], (PoolSnapshot));
+
+        // compute average of previous snapshots (indices 1..data.length-1)
+        uint256 sum = 0;
+        uint256 count = 0;
+        for (uint256 i = 1; i < data.length; ++i) {
+            PoolSnapshot memory s = abi.decode(data[i], (PoolSnapshot));
+            sum += s.liquidity;
+            unchecked { ++count; }
+        }
+        if (count == 0) return (false, bytes("no_baseline"));
+
+        uint256 avgPrev = sum / count;
+
+        // Avoid triggering on tiny pools or tiny baselines
+        if (avgPrev < MIN_LIQUIDITY_FLOOR) return (false, bytes("baseline_too_small"));
+
+        // Trigger if newest < THRESH * avgPrev  (THRESH = 0.5 here)
+        // Cross multiply to avoid precision issues
+        if (newest.liquidity * THRESH_DEN < avgPrev * THRESH_NUM) {
+            // pause() has no args — return empty bytes
+            return (true, bytes(""));
+        }
+
+        return (false, bytes(""));
+    }
+}
diff --git a/contagion-trap/README.md b/contagion-trap/README.md
new file mode 100644
index 0000000..ff243c0
--- /dev/null
+++ b/contagion-trap/README.md
@@ -0,0 +1,34 @@
+# ContagionTrap
+
+**Trap Name:** ContagionTrap  
+**Author:** Bindoskii (MUJI)  
+**License:** MIT  
+
+##  Description
+ContagionTrap monitors liquidity levels of a neighboring DEX pool to detect sharp liquidity drains that may indicate contagion or instability.  
+It acts as an early warning mechanism that triggers a response when the newest liquidity snapshot drops below 50% of the recent average.
+
+##  Trigger Logic
+Collects reserve data (`reserve0 + reserve1`) from a UniswapV2 compatible pool.
+Maintains a history of liquidity snapshots.
+Compares the latest liquidity value to the average of previous snapshots.
+- **Triggers** if:  
+  `newest_liquidity * 2 < average_previous_liquidity` 
+
+##  Action on Trigger
+When triggered, the trap emits a response intended for Drosera responders  typically to **pause** the affected protocol or activate a containment mechanism.
+
+##  Deployment Details
+- **Network:** Hoodi Testnet (or simulated Foundry localnet)
+- **Parameters:**  
+  Replace `NEIGHBOR_DEX_POOL` with the target DEX pool address you want to monitor.
+- **Setup:**  
+  1. Deploy the contract using Foundry or Drosera’s CLI.  
+  2. Register the trap on Drosera.  
+  3. Define response logic for containment.
+
+##  Testing
+You can simulate falling liquidity by adjusting mock pool reserves in your Foundry tests.
+
+##  License
+MIT
diff --git a/contagion-trap/foundry.toml b/contagion-trap/foundry.toml
new file mode 100644
index 0000000..c84a9ef
--- /dev/null
+++ b/contagion-trap/foundry.toml
@@ -0,0 +1,8 @@
+[profile.default]
+src = "src"
+out = "out"
+libs = ["lib"]
+remappings = [
+    "contracts/=src/",
+]
+compiler_version = "0.8.19"
diff --git a/contagion-trap/interfaces/ITrap.sol b/contagion-trap/interfaces/ITrap.sol
new file mode 100644
index 0000000..cf82437
--- /dev/null
+++ b/contagion-trap/interfaces/ITrap.sol
@@ -0,0 +1,16 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+interface ITrap {
+    /// @notice Collects state data to analyze later.
+    function collect() external view returns (bytes memory);
+
+    /// @notice Decides whether a trap should respond, based on collected data.
+    /// @param data Collected snapshots (data[0] is newest).
+    /// @return shouldTrigger Whether the trap should trigger.
+    /// @return responseData Optional data for responder actions.
+    function shouldRespond(bytes[] calldata data)
+        external
+        pure
+        returns (bool shouldTrigger, bytes memory responseData);
+}
diff --git a/contagion-trap/remappings.txt b/contagion-trap/remappings.txt
new file mode 100644
index 0000000..8555209
--- /dev/null
+++ b/contagion-trap/remappings.txt
@@ -0,0 +1,2 @@
+contracts/=src/
+forge-std/=lib/forge-std/src/
diff --git a/contagion-trap/src/ContagionTrap.sol b/contagion-trap/src/ContagionTrap.sol
new file mode 100644
index 0000000..a767e28
--- /dev/null
+++ b/contagion-trap/src/ContagionTrap.sol
@@ -0,0 +1,54 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+import {ITrap} from "../interfaces/ITrap.sol";
+
+interface IUniswapV2Pair {
+    function getReserves() external view returns (
+        uint112 reserve0, uint112 reserve1, uint32 blockTimestampLast
+    );
+}
+
+/**
+ * @title ContagionTrap
+ * @notice Monitors a neighbor DEX pool; triggers if newest liquidity < 50% of
+ *         the average of previous snapshots in the window.
+ */
+contract ContagionTrap is ITrap {
+    address public constant NEIGHBOR_DEX_POOL = 0x0000000000000000000000000000000000000000;
+
+    struct PoolSnapshot {
+        uint256 liquidity;
+        uint256 blockNumber;
+    }
+
+    function collect() external view override returns (bytes memory) {
+        (uint112 r0, uint112 r1, ) = IUniswapV2Pair(NEIGHBOR_DEX_POOL).getReserves();
+        uint256 liq = uint256(r0) + uint256(r1);
+        return abi.encode(PoolSnapshot({ liquidity: liq, blockNumber: block.number }));
+    }
+
+    function shouldRespond(bytes[] calldata data)
+        external
+        pure
+        override
+        returns (bool shouldTrigger, bytes memory responseData)
+    {
+        if (data.length < 2) return (false, bytes("insufficient_history"));
+
+        PoolSnapshot memory newest = abi.decode(data[0], (PoolSnapshot));
+
+        uint256 sum;
+        for (uint256 i = 1; i < data.length; i++) {
+            PoolSnapshot memory s = abi.decode(data[i], (PoolSnapshot));
+            sum += s.liquidity;
+        }
+
+        uint256 avgPrev = sum / (data.length - 1);
+        if (newest.liquidity * 2 < avgPrev) {
+            return (true, bytes(""));
+        }
+
+        return (false, bytes(""));
+    }
+}
diff --git a/contagion-trap/test/ContagionTrap.t.sol b/contagion-trap/test/ContagionTrap.t.sol
new file mode 100644
index 0000000..7d57a0d
--- /dev/null
+++ b/contagion-trap/test/ContagionTrap.t.sol
@@ -0,0 +1,44 @@
+// SPDX-License-Identifier: MIT
+pragma solidity ^0.8.19;
+
+import "forge-std/Test.sol";
+import "../src/ContagionTrap.sol";
+
+contract ContagionTrapTest is Test {
+    ContagionTrap trap;
+
+    function setUp() public {
+        trap = new ContagionTrap();
+    }
+
+    function testTriggerWhenLiquidityDrops() public {
+        // Simulate older high liquidity snapshots
+        bytes ;
+        data[0] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 100, blockNumber: 100 }));
+        data[1] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 400, blockNumber: 90 }));
+        data[2] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 500, blockNumber: 80 }));
+
+        // Since newest (100) < 50% of avg (450), should trigger
+        (bool shouldTrigger, ) = trap.shouldRespond(data);
+        assertTrue(shouldTrigger, "Expected trigger when liquidity drops by >50%");
+    }
+
+    function testNoTriggerWhenStableLiquidity() public {
+        bytes ;
+        data[0] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 450, blockNumber: 100 }));
+        data[1] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 500, blockNumber: 90 }));
+        data[2] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 480, blockNumber: 80 }));
+
+        (bool shouldTrigger, ) = trap.shouldRespond(data);
+        assertFalse(shouldTrigger, "Should not trigger when liquidity stable");
+    }
+
+    function testInsufficientHistory() public {
+        bytes ;
+        data[0] = abi.encode(ContagionTrap.PoolSnapshot({ liquidity: 500, blockNumber: 100 }));
+
+        (bool shouldTrigger, bytes memory info) = trap.shouldRespond(data);
+        assertFalse(shouldTrigger, "Should not trigger with insufficient history");
+        assertEq(string(info), "insufficient_history");
+    }
+}