Reentrancy

Definition ∞ Reentrancy is a security vulnerability in smart contracts that allows an attacker to repeatedly execute a function before the initial execution has completed. This occurs when a contract makes an external call to another untrusted contract, which then calls back into the original contract before its state has been updated. The attacker can exploit this loop to drain funds or manipulate contract logic. It represents a critical flaw in contract design that necessitates careful coding practices. Preventing reentrancy is a primary concern for secure smart contract development.
Context ∞ Reentrancy vulnerabilities have been responsible for significant financial losses in the cryptocurrency space, particularly in decentralized finance (DeFi) protocols. The ongoing discussion revolves around best practices for smart contract security, including the use of reentrancy guards and the principle of “checks-effects-interactions.” Key debates focus on the effectiveness of static analysis tools versus formal verification in detecting such flaws. Future developments to watch include the adoption of more secure programming patterns and the development of advanced auditing methodologies to mitigate reentrancy risks.

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→Liquidity Pool

→DeFi Exploit

→Digital Assets

GMX V1 Suffers Reentrancy Exploit, Draining $42 Million

A reentrancy vulnerability in GMX V1's smart contracts allowed an attacker to manipulate asset valuations, leading to significant liquidity drain.

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→Flash Loan

→DeFi Security

→Token Depeg

Bedrock uniBTC Protocol Exploited via Faulty Minting Logic

A critical flaw in Bedrock's uniBTC minting contract allowed attackers to exploit a 1:1 exchange rate with undervalued ETH, leading to significant asset drain.

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→Arbitrum Network

→Price Manipulation

→Fund Recovery

GMX V1 Vault Suffers Reentrancy Exploit, $42 Million Impact

A reentrancy vulnerability in GMX V1's vault logic permitted asset under management manipulation, risking substantial liquidity drain.

→Risk Mitigation

→DeFi Exploit

→Smart Contract

Kinto Ethereum L2 Suffers Reentrancy Exploit, Loses $15 Million USDC

A reentrancy vulnerability in Kinto's minting contract allowed attackers to siphon $15 million in USDC, exposing critical L2 smart contract design flaws.

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→Vulnerability

→Blockchain Security

→Asset Manipulation

GMX V1 Suffers $40 Million Reentrancy Exploit on Arbitrum

A critical reentrancy vulnerability in GMX V1's GLP pricing mechanism allowed attackers to manipulate asset valuations, enabling unauthorized token minting and liquidity drain.