An arithmetic flaw is a computational error within a system. This type of defect can result from incorrect mathematical operations embedded in smart contracts or protocol logic. Such flaws often lead to discrepancies in asset balances or transaction processing. Their presence can undermine the integrity of decentralized applications and financial systems.
Context
Discussions often center on identifying and mitigating these vulnerabilities through rigorous auditing and formal verification methods. Preventing arithmetic flaws is crucial for maintaining trust and security in blockchain networks and digital asset operations. The potential for exploitation poses a significant risk to user funds and overall system stability.
A low-level arithmetic precision flaw in Balancer's V2 Composable Stable Pools allowed invariant manipulation, resulting in a catastrophic $128M asset drain across multiple chains.
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