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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, detailed in the format typically used in professional security audit reports. Each entry includes the vulnerability class, a technical description, potential impact, and a recommended mitigation strategy.


1. Reentrancy in Compound Interest Calculation

Vulnerability Class: Reentrancy (CWE-841)

Severity: Critical

Affected Component: StakingPool.sol, withdraw() function

Description:

The withdraw() function allows users to redeem their staked tokens. The function updates the user’s internal balance in the mapping balances[msg.sender] after the external call to IERC20(token).transfer(msg.sender, amount). This violates the Checks-Effects-Interactions pattern.

An attacker can deploy a malicious contract that calls withdraw() and, within the transfer callback (via ERC-777 or a custom token with hooks), re-enter the

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