Definition ∞ A decentralized exchange vulnerability is a weakness in the code or design of a decentralized exchange that could be exploited by malicious actors. These vulnerabilities might permit unauthorized access to funds, manipulation of trading pairs, or other detrimental activities. Unlike centralized exchanges, fixing these issues often requires a community consensus or protocol upgrade. Identifying and addressing these flaws is critical for user security.
Context ∞ News frequently reports on decentralized exchange vulnerabilities and their resulting exploits, leading to significant asset losses. The open-source nature of many DEX protocols allows for public scrutiny, but also exposes potential weaknesses to attackers. The ongoing challenge for the DeFi sector is to maintain decentralization while rigorously auditing and securing these complex systems.
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