Smart Contract Layer-attacks

Smart contract attacks exploit vulnerabilities in DeFi protocols caused by coding mistakes, unsafe calls to untrusted contracts, and access control mistakes. The audit of the DeFi protocol leads to a decrease in the probability of exploitation by a factor of four. Bug bounties - reward programs for identifying software vulnerabilities - are a popular way to help prevent smart contract exploits. Smart-contract Layer attacks affect all DeFi stakeholders.

• Code Vulnerabilities: Bugs or errors in the smart contract code can lead to unintended behaviors or exploitation. These vulnerabilities can arise from coding mistakes, insufficient testing, or unanticipated interactions with other contracts.

• Audit Limitations: While audits are essential, they cannot guarantee the absence of all vulnerabilities. Moreover, audits are typically limited in scope and depend on the expertise of the auditing team.