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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, described in a format suitable for an audit report. Each entry includes the vulnerability class, technical mechanism, impact, and a recommended mitigation.


1. Reentrancy in Price Oracle Updates (Flash Loan Attack Vector)

Vulnerability Class: Reentrancy / Oracle Manipulation

Severity: High

Affected Component: PriceFeed or LiquidationModule

Description

The smart contract relies on a single on-chain price oracle (e.g., Chainlink) for collateral valuation during liquidation or borrowing. However, the oracle update function is callable by any external account, and the contract does not enforce a minimum time delay or deviation threshold before accepting a new price.

Technical Mechanism

  1. An attacker initiates a flash loan to obtain a large amount of the collateral asset.
  2. The attacker calls the oracle’s updatePrice() function with a manipulated price (e.g

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