Can Smart Contracts Be Programmed to Execute a Form of Iceberg Order, and What Are the Inherent Security Risks?

Yes, a smart contract can be coded to function as an iceberg order, automatically releasing small chunks of a larger stored asset amount onto a decentralized exchange (DEX). The primary security risk is the potential for vulnerabilities in the smart contract's code.

A bug or exploit could allow an attacker to drain the entire reserve of assets held by the contract. Another risk is transaction ordering, where miners or validators could front-run the contract's transactions if they detect the pattern, negating the order's purpose.

The contract's logic is also public, potentially revealing the strategy to everyone.