Definition ∞ A financial logic exploit abuses economic design flaws in a DeFi protocol for illicit gain. This type of attack capitalizes on fundamental weaknesses or incorrect assumptions within a decentralized finance protocol’s economic model. Instead of targeting code bugs, attackers manipulate variables such as price oracles, interest rate calculations, or collateral requirements to extract value. These exploits often involve complex sequences of transactions designed to trick the protocol’s internal accounting.
Context ∞ Financial logic exploits are a significant concern in the DeFi space, frequently reported in news when protocols suffer substantial losses. The industry actively seeks to harden economic models through rigorous game theory analysis and comprehensive simulations. Discussions center on designing more robust and resilient economic systems that can withstand sophisticated manipulative tactics.
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