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Nexus Intelligence Research
Nexus Intelligence Research

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DeFi Smart Contract Vulnerabilities Audit Guide

Here are three specific, high-impact DeFi smart contract vulnerabilities commonly found in audit reports, described with technical precision and real-world context. These are structured as they would appear in a professional security audit report.


1. Reentrancy via Price Oracle Manipulation (Flash Loan Attack)

Vulnerability Class: Reentrancy / Oracle Manipulation

Severity: Critical

Affected Component: Lending Pool or AMM Swap Function

Description:

The smart contract relies on an external price oracle (e.g., Chainlink) that updates prices at discrete intervals (e.g., every 30 seconds). The contract’s swap() or borrow() function calculates the user’s credit or debt based on the current oracle price without verifying that the underlying asset balance has not been manipulated within the same transaction. An attacker can exploit this by:

  1. Taking a flash loan of a large amount of token A.
  2. Swapping

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