Economic Exploits

Definition ∞ Economic exploits are malicious actions or strategies that manipulate the design or incentives of a decentralized system to extract value unfairly. These exploits often leverage clever coding or game-theoretic weaknesses within smart contracts or protocol mechanics. They result in the unauthorized transfer of assets or the capture of economic rents by the perpetrator.
Context ∞ News detailing economic exploits, such as flash loan attacks or reentrancy bugs, highlights the ongoing challenges in securing complex decentralized applications (dApps). Understanding these exploits is crucial for assessing the security risks associated with novel financial instruments and the vigilance required to protect user funds in emergent digital economies.