The Woeful State of Web3 Auditing
Recent exploits at audited DeFi protocols like Balancer and Yearn Finance have reignited debates about the efficacy of smart contract audits. Despite multiple security reviews, these platforms suffered attacks—including Euler Finance's exploit via an audit-inspired function change. The $USPD stablecoin collapsed within months after an unaudited deployment flaw, exposing systemic gaps in current practices.
Audits remain a paradoxical industry standard. Projects invest heavily in them, market their completion, yet sophisticated attackers consistently bypass these safeguards. The core issue lies in scope limitations—auditors only examine what clients request, as demonstrated by Terra's hypothetical stablecoin audit that WOULD have flagged instability without preventing its collapse.
