DeFi exploits often combine a contract bug with a flash loan or a manipulated oracle. Exchanges and bridges are more often hacked through stolen keys.
Audits, bug bounties, time-tested code and insurance funds lower the risk; none removes it.
Also called: hack · smart contract exploit
In shortAn attack that abuses a bug in code or a weak setup to steal funds from a protocol, bridge or exchange.
DeFi exploits often combine a contract bug with a flash loan or a manipulated oracle. Exchanges and bridges are more often hacked through stolen keys.
Audits, bug bounties, time-tested code and insurance funds lower the risk; none removes it.