What Is the Main Security Risk of a Smart Contract on a DEX? ▴ Learn

What Is the Main Security Risk of a Smart Contract on a DEX?

The main security risk is a smart contract exploit, which is a vulnerability in the contract's code that can be exploited by an attacker. This can lead to the unauthorized draining of the protocol's funds, including the insurance fund or liquidity pools.

Audits and formal verification are crucial to mitigate this risk.

What Specific Code Vulnerability in the DAO Contract Allowed the Reentrancy?

What Is the Difference between “Auto-Deleveraging” and Using an Insurance Fund?

What Is the Primary Risk Associated with the “Code Is Law” Nature of Smart Contracts?

What Happens to My Investment If a Rebase Token’s Smart Contract Is Exploited?