Economic Attacks

Definition ∞ Economic attacks are malicious actions designed to exploit the economic incentives or game-theoretic properties of a blockchain protocol or decentralized application. These attacks aim to manipulate the system for financial gain, often by causing disruptions, draining liquidity, or extracting value. Understanding these mechanisms is critical for assessing protocol security and market stability.
Context ∞ The current focus regarding economic attacks is on sophisticated exploits within decentralized finance (DeFi) protocols, such as reentrancy attacks and oracle manipulation. These incidents underscore the importance of robust economic modeling and incentive design in securing decentralized systems. Future discussions will likely address the increasing complexity of these attacks and the development of more resilient economic safeguards and monitoring systems.