glossary
Contract Exploit
Definition
A type of onchain threat that refers to the exploitation of a vulnerability within a smart contract, which allows an attacker to manipulate the contract’s logic to steal funds or achieve an unauthorized outcome.
Description
Smart contracts are only as secure as the code they are written in. Malicious actors often scour contracts for coding flaws that can be exploited for financial gain. For example, an attacker might discover a reentrancy vulnerability in a contract, allowing them to drain funds through repeated withdrawal calls before the contract updates its balance.
Contract exploits are a major concern in DeFi, where billions of dollars are managed by automated contracts. Companies like Blockaid are building ODR systems that monitor contract interactions in real-time, ensuring that any attempt to exploit these vulnerabilities is detected and mitigated before damage occurs.