Here are three specific DeFi smart contract vulnerabilities suitable for inclusion in a professional audit report. Each entry follows the standard structure: Title, Severity, Description, Impact, and Recommendation.
1. Reentrancy in Flash Loan Callbacks
Severity: High
Vulnerability Type: Reentrancy (CWE-693)
Description:
The executeFlashLoan function in the LiquidityPool contract allows external callers to borrow funds and execute an arbitrary callback function. The contract uses the Checks-Effects-Interactions pattern incorrectly: it updates the internal accounting state (e.g., pendingBalance) after invoking the external callback via call(). Specifically, lines 45–52 of LiquidityPool.sol show:
solidity
function executeFlashLoan(uint256 amount, address receiver, bytes calldata params) external {
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