Composable Pool Vulnerability

Definition ∞ A composable pool vulnerability is a weakness in a liquidity pool that arises from its interaction with other protocols. This type of security flaw emerges when interconnected decentralized finance (DeFi) components create unexpected attack surfaces. The ability of protocols to build upon each other, while powerful, can introduce systemic risks if one component’s weakness is leveraged through another. Attackers exploit these interdependencies to drain funds or manipulate asset values across multiple linked contracts.
Context ∞ News often reports on composable pool vulnerabilities following complex DeFi exploits, highlighting the systemic risks inherent in highly interconnected decentralized ecosystems. Developers and auditors are increasingly focusing on holistic security assessments that consider cross-protocol interactions. The ongoing challenge involves balancing the innovation of composability with the imperative for robust security across the DeFi landscape.