Definition ∞ A Token Pair Exploit refers to a security vulnerability or attack vector that specifically targets the interaction between two different digital tokens within a decentralized exchange or lending protocol. This type of exploit often leverages discrepancies in how the protocol handles the valuation, transfer, or accounting of the two assets, leading to unauthorized fund extraction or manipulation. It relies on the specific logic governing the pair’s relationship.
Context ∞ Token pair exploits are a common source of hacks and financial losses in the DeFi space, frequently reported in crypto security analyses. These incidents underscore the importance of comprehensive auditing for smart contracts that manage multiple token types and their interdependencies. Developers are continuously refining their contract designs and testing methodologies to prevent such vulnerabilities, ensuring the secure operation of token-based financial instruments.
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