Here are three common DeFi smart contract vulnerabilities, along with specific detection methods. These are among the most frequently exploited issues in decentralized finance (DeFi) protocols.
1. Reentrancy Attacks
Description:
A reentrancy attack occurs when a smart contract calls an external contract (e.g., a user’s wallet or another DeFi protocol) before updating its own internal state. If the external contract is malicious, it can call back into the vulnerable function during the external call, allowing the attacker to withdraw funds multiple times before the state variable (e.g., user balance) is updated.
Example:
A withdraw() function that sends ETH first, then updates the user’s balance.
How to Detect:
-
Static Analysis Tools:
- Use Slither (by Trail of Bits) to detect reentrancy patterns.
bash
slither --detect reentrancy-eth
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