DeFi Security Architecture

Definition ∞ DeFi Security Architecture refers to the structural design and implementation of security measures within decentralized finance protocols. This encompasses smart contract audits, economic incentive alignment, oracle security, and resistance to common attack vectors like flash loans or reentrancy. A robust security architecture is paramount for protecting user funds and maintaining protocol integrity. It aims to minimize vulnerabilities inherent in open-source, permissionless systems.
Context ∞ Discussions in crypto news frequently address the state of DeFi security architecture, particularly following high-profile exploits and hacks. Developers continuously work on refining protocol designs and audit practices to enhance resilience against evolving threats. The ongoing challenge involves balancing decentralization principles with the necessity for strong security frameworks to prevent significant asset losses.