DeFi betting platforms have greatly risen in popularity, but the opportunities to compromise them are also increasing. Hackers favor vulnerabilities in DeFi Betting Contracts, which they exploit to drain funds or tamper with the outcome of a bet.
The most common attack vectors are:
Smart contract flaws: The poorly audited code might have bugs for attackers. Oracle manipulation: The attackers can adjust the price feeds to scam the odds of the game. Flash loan attacks: Huge instant loans are used to temporarily scam the market conditions. Reentrancy vulnerabilities: here hackers utilizes the contract function to drain funds several times Front-running: In this category, the miners or the observers will place a bet in anticipation of when other transactions will take place.
Overall, risks should be reduced by platforms emphasizing rigorous code auditing, secure oracles, and time-locks on transactions. Users must also practice caution, doing their due diligence before participating in any DeFi betting platform.