Economic Exploit Vector

Definition ∞ An economic exploit vector is a specific pathway or method through which an attacker can manipulate the economic incentives or mechanisms within a decentralized system to their financial advantage. These attacks often leverage protocol design flaws, oracle inaccuracies, or market inefficiencies rather than purely technical code vulnerabilities. Such vectors can result in substantial asset loss or systemic instability for affected platforms. Identifying and mitigating these requires a deep understanding of game theory and market dynamics.
Context ∞ Reports on decentralized finance DeFi incidents frequently detail economic exploits, such as flash loan attacks or oracle manipulation, which do not necessarily involve traditional code bugs. The constant search for economic exploit vectors by malicious actors represents a significant challenge for protocol designers. Developing resilient economic models and conducting thorough economic security audits are critical areas of focus for the digital asset community.