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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 a technical description, a real-world or common pattern, and recommended remediation strategies.

1. Reentrancy via Unchecked External Calls (CEI Violation)

Description:

This vulnerability occurs when a smart contract makes an external call to an untrusted contract (e.g., transferring tokens or interacting with another DEX) before updating its internal state. If the external contract is malicious, it can re-enter the vulnerable contract’s function before the state is updated, allowing an attacker to drain funds or manipulate state logic multiple times.

Specific Example (Solidity Pattern):


solidity
function withdraw() external {
    address recipient = msg.sender;
    uint256 amount = balances[recipient];

    // VULNERABILITY: External call before state update
    (bool success, ) = recipient.call{value
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