In DeFi, a single bug can be catastrophic. Smart contract exploits are one of the most common ways people lose money onchain.
Hackers have many tactics. From reentrancy bugs and logic vulnerabilities to math and rounding errors, black hats are constantly looking for ways to siphon funds. Audits, bug bounties and active monitoring all lower the risk but never fully eliminate it.
Some of the worst exploits hit code that was live for years and audited multiple times before anyone found the flaw.
Who is exposed to risk from smart contract exploits?
Anyone with funds in a protocol, from investors to institutions, protocols, curators and more. The more contracts your capital touches, or capital your contracts hold, the more exposure you carry.
