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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 commonly identified in professional security audits, described with technical precision suitable for an audit report.

1. Price Oracle Manipulation via Low-Liquidity Pools

CWE: CWE-20 (Improper Input Validation) / CWE-345 (Insufficient Verification of Data Authenticity)

Description:
The smart contract directly retrieves asset prices from a decentralized exchange (DEX) pool (e.g., Uniswap V2/V3, Curve) using a single getReserves() call without employing a time-weighted average price (TWAP) or a reputable off-chain oracle (e.g., Chainlink, Pyth).

Vulnerability Mechanism:

  • Flash Loan Attack: An attacker acquires a large flash loan, executes a series of trades to artificially skew the price of an asset in the low-liquidity pool, and then uses the manipulated price to borrow or mint assets at

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