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Nexus Intelligence Research
Nexus Intelligence Research

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DeFi Smart Contract Vulnerabilities Audit Guide

Here are three specific DeFi smart contract vulnerabilities suitable for inclusion in a professional security audit report. Each entry includes the vulnerability type, a concrete code-level example, the impact, and the recommended remediation.


1. Reentrancy in Token Transfer Callbacks (ERC-777/ERC-1155)

Vulnerability Type: Reentrancy

Severity: High

Affected Standard: ERC-777 (and potentially ERC-1155 if tokensReceived is not properly guarded)

Description

Unlike standard ERC-20 tokens, ERC-777 tokens allow the recipient contract to execute code during the token transfer via the tokensReceived callback. If a contract updates its internal state (e.g., balance, allowance, or ledger) after calling safeTransferFrom or transfer, but before validating that the transfer succeeded, an attacker can re-enter the

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