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Batch Swap Exploit

Definition ∞ A batch swap exploit is a vulnerability where multiple trades processed together can be manipulated for illicit gain. This attack vector specifically targets decentralized exchanges or liquidity pools that execute transactions in groups. An attacker can strategically order or structure trades within a batch to unfairly influence asset prices or extract value. This manipulation often results in significant financial loss for liquidity providers or other users within the affected pool.
Context ∞ The occurrence of batch swap exploits often leads to immediate news coverage and urgent protocol updates within the DeFi sector. Developers are actively working on countermeasures, including improved transaction ordering mechanisms and enhanced smart contract auditing. The ongoing challenge is to prevent such sophisticated attacks while maintaining the efficiency of batch processing in decentralized finance.

A high-fidelity render depicts a sophisticated, modular technological apparatus, central to a distributed ledger technology DLT ecosystem. A prominent white cylindrical interconnect module forms the core, featuring intricate metallic fins suggesting intense cryptographic hashing or transaction validation processes. This central unit links two larger, dark grey node infrastructure segments, emphasizing seamless block propagation and cross-chain communication. Subtle vapor indicates active operation and high network throughput, characteristic of advanced scalability solutions and interoperability protocols facilitating atomic swaps and efficient smart contract execution within a decentralized infrastructure.

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Balancer Protocol Drained Exploiting BatchSwap Composable Stable Pool Rounding Flaw

The subtle rounding error in V6 Composable Stable Pool logic was weaponized, enabling batchSwap manipulation to siphon $121 million in assets.