Definition ∞ An AMM vulnerability is a flaw in an automated market maker protocol that can be exploited by malicious actors. These flaws can lead to the theft of user funds or the manipulation of asset prices within the decentralized exchange. Understanding these vulnerabilities is crucial for assessing the security posture of DeFi protocols and the safety of digital assets traded on them.
Context ∞ The ongoing evolution of decentralized finance necessitates constant vigilance regarding smart contract security. Recent incidents have highlighted how subtle coding errors or economic design flaws in AMMs can be leveraged to drain liquidity pools or cause significant price dislocations. Analysts are closely monitoring protocol audits and the emergence of new exploit vectors as DeFi applications gain broader adoption.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
