Exploit
An attack that takes advantage of a vulnerability in a smart contract or protocol to steal funds.
In-Depth Explanation
DeFi exploits have drained billions. Common vectors include: reentrancy attacks, oracle manipulation, flash loan attacks, governance attacks, and bridge vulnerabilities. Exploits differ from rug pulls (intentional theft by developers). Post-exploit, protocols may try to negotiate fund return, fork to reverse the theft, or compensate victims from treasury.
Related Terms
Flash Loan
An uncollateralized loan that must be borrowed and repaid within a single blockchain transaction.
Smart Contract Audit
A security review of smart contract code by specialists to identify vulnerabilities before deployment.
Smart Contract
Self-executing code deployed on a blockchain that automatically enforces agreement terms when conditions are met.
More in Infrastructure
View all →Gas Fees
Transaction fees paid to validators/miners for executing operations on a blockchain.
Gwei
A denomination of Ether equal to one billionth of an ETH, commonly used to express gas prices.
Layer 2
L2Scaling solutions built on top of a base blockchain (L1) that process transactions off-chain while inheriting L1 security.
Layer 1
L1The base blockchain that provides security and consensus, such as Ethereum, Bitcoin, or Solana.