Daily Papers

The rise of LLM-as-a-Service and other confidential cloud workloads demands cryptographic proof that user data is processed in a trusted, untampered environment. Existing solutions, notably Confidential Containers (CoCo), enforce a strict "one Pod per VM" model that attests only the Guest OS stack, leaving container-level identity unverified and incurring prohibitive per-VM resource overhead. We present dstack-capsule, a Kubernetes platform that enables Pod-level remote attestation on Intel TDX by allowing multiple Pods to share a single Confidential VM while each retains independent, hardware-backed proof of identity. Our key insight is a two-layer attestation architecture: static platform measurements are frozen in RTMR[3] via an irreversible privilege fuse, while dynamic Pod identities (pod_uid, pod_spec_hash, workload_id) are embedded in the TDX Quote's report_data field and signed by hardware on every request. dstack-capsule introduces (1) a Pod-level attestation protocol binding Pod spec digests to hardware-signed Quotes; (2) a privilege fuse mechanism that atomically transitions a node from setup mode to secure mode; (3) a multi-layer sandbox spanning storage, runtime, admission, API, and network isolation layers; and (4) a complete open-source implementation based on Kubernetes 1.32, Intel TDX, and Sysbox. We evaluate the security properties, attestation correctness, and performance characteristics of dstack-capsule, demonstrating that it achieves Pod-granularity verification without the resource overhead of per-VM isolation.

On-policy distillation (OPD) offers superior capacity transfer by supervising student-sampled trajectories with dense token-level signals. To furnish high-quality supervision sources and thereby elevate the performance frontier of distillation, an intuitive direction is to infuse privileged information to either teacher or student itself. However, this additional input induces a potential failure mode we dub privilege illusion: a pattern that conflates the transferable capability gap that students are meant to close, and the information asymmetry gap that can only be mimicked but never replicated. This issue is further amplified by the inherent non-uniformity of token-level supervision, where only a small subset of tokens carries pivotal capability-bearing signals. To this end, we propose DOPD, an advantage-aware dual distillation paradigm that dynamically routes token-level supervision between privileged teacher and privileged student policies based on their advantage gap and relative probabilities. Each token receives supervision of different strength, objective, and strategy from either teacher or student itself, which transfers credible capability while simultaneously receiving auxiliary signals, to alleviate privilege illusion. Extensive experiments on both large language model (LLM) and vision-language model (VLM) settings demonstrate that DOPD consistently outperforms Vanilla OPD and other counterparts. Further results on stability, robustness, continual learning, and out-of-distribution tasks validate its superiority.

As LLM agents increasingly select tools autonomously, their choices among tools with different privileges become safety-relevant. However, prior tool-selection studies focus on safety-agnostic metadata preferences, leaving privilege-sensitive choices underexplored. To address this gap, we study over-privileged tool selection, in which an agent selects or escalates to a higher-privilege tool despite a sufficient lower-privilege alternative. We introduce ToolPrivBench to evaluate whether agents choose higher-privilege tools despite sufficient lower-privilege alternatives, measuring both initial selection and escalation after transient tool failures. Across eight domains and five recurring risk patterns, we find that over-privileged tool selection is common among mainstream LLM agents and is further amplified by transient failures. We further find that general safety alignment does not reliably transfer to least-privilege tool choice, while prompt-level controls provide only limited mitigation under transient failures. We therefore introduce a privilege-aware post-training defense that teaches agents to prefer sufficient lower-privilege tools and escalate only when necessary. Our mitigation experiments show that this defense substantially reduces unnecessary high-privilege tool use while preserving general capabilities.