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DeFi Exploitation

Definition

DeFi Exploitation refers to malicious acts targeting vulnerabilities within decentralized finance protocols to illicitly acquire assets or manipulate system operations. These exploits frequently involve smart contract flaws, economic manipulation, or governance attacks. Perpetrators leverage coding errors, logical inconsistencies, or flash loan attacks to drain liquidity pools or steal user funds. Such security breaches pose significant risks to the stability and trustworthiness of the DeFi ecosystem.