How can a decentralized exchange be hacked?
Asked 2 years ago
Hi everyone, I've been looking up about decentralized exchanges and while they seem quite cool, I couldn't help but wonder about the safety protocols and regulations. Is it easy to hack a DEX or are they quite well guarded?
Courtney Blankenship
Wednesday, May 25, 2022
Smart contracts, the underlying logic of decentralized exchanges cannot be altered once they are live on the blockchain. If there are problems with the logic of the smart contract for any reason, hackers can exploit these vulnerabilities and steal the funds stored in these smart contracts. In a recent wormhole whitehat, smart contract bounty a hacker known as Satya0X noticed a proxy smart contract that was not initialized properly on Wormhole. He was paid $10 million for that. That is just a side note to highlight the importance of security in blockchain. To stay safe, only use protocols that have been audited by top crypto auditing firms like Certick and Hacken. Also, check details about the project on Apeoclock and Rugdocs to ensure you are safe.
Please follow our Community Guidelines
Related Posts
Filip Dimkovski
High Frequency Trading Crypto Explained
Filip Dimkovski
DEX vs. Dapp: What’s the Difference?
Anderson Ezie
How to Create a Cryptocurrency Exchange
Anderson Ezie
Is Ethereum Centralized?
Filip Dimkovski
Where Can You Buy dYdX?
Filip Dimkovski
Understanding DEX Aggregators
Filip Dimkovski
What Is Slippage in Crypto?
Can't find what you're looking for?