DeFi Security
Audits Guide
DeFi security audits are professional reviews of smart contract code by firms like Trail of Bits, OpenZeppelin, and Consensys Diligence. Look for recent audits (within 12 months), multiple audit firms, resolved critical issues, and public audit reports before investing in any DeFi protocol.
- • Trail of Bits (Tier 1)
- • OpenZeppelin (Tier 1)
- • Consensys Diligence (Tier 1)
- • No recent audits
- • Unresolved critical issues
- • Unknown audit firms
- • Public audit reports
- • Issue remediation
- • Audit scope coverage
Learn how to evaluate DeFi protocol security through audit analysis and protect your investments
Top DeFi Audit Firms
Leading security auditing firms trusted by major DeFi protocols
Trail of Bits
Specialty:
Comprehensive security audits
Notable Clients:
- • Ethereum Foundation
- • Chainlink
- • Uniswap
Key Strengths:
- Deep technical expertise
- Formal verification
- Long track record
Consensys Diligence
Specialty:
Smart contract security
Notable Clients:
- • MetaMask
- • Lido
- • Compound
Key Strengths:
- Ethereum expertise
- Tool development
- Educational content
OpenZeppelin
Specialty:
Security standards & audits
Notable Clients:
- • Aave
- • 0x Protocol
- • Coinbase
Key Strengths:
- Industry standards
- Open source tools
- Security libraries
ChainSecurity
Specialty:
Formal verification
Notable Clients:
- • Bancor
- • Ethereum 2.0
- • 1inch
Key Strengths:
- Academic rigor
- Formal methods
- Research focus
Quantstamp
Specialty:
Automated & manual audits
Notable Clients:
- • Maker
- • Crypto.com
- • Binance
Key Strengths:
- Automated tools
- Scale operations
- Cost-effective
Halborn
Specialty:
Blockchain security
Notable Clients:
- • Solana
- • Polygon
- • Avalanche
Key Strengths:
- Multi-chain expertise
- Incident response
- Penetration testing
Security Audit Checklist
Essential criteria to evaluate when reviewing DeFi protocol audits
Audit Firm Credibility
- Recognized auditing firm with proven track record
- Previous audits of similar protocols
- Public reputation and client testimonials
- Team credentials and experience
Audit Scope & Depth
- Complete smart contract coverage
- Business logic verification
- Access control mechanisms
- Economic model analysis
Findings & Remediation
- Clear categorization of issues (Critical, High, Medium, Low)
- Detailed explanation of vulnerabilities
- Evidence of issue remediation
- Re-audit after fixes
Documentation Quality
- Comprehensive methodology explanation
- Code coverage metrics
- Testing procedures documented
- Clear recommendations provided
Security Red Flags to Avoid
Warning signs that indicate poor security practices in DeFi protocols
No Recent Audits
CriticalProtocol has not been audited in the last 12 months or has never been audited.
Unknown Audit Firm
HighAudited by unknown or unverified auditing firms without established reputation.
Critical Issues Unresolved
CriticalAudit reports show critical or high severity issues that remain unaddressed.
Limited Audit Scope
MediumAudit only covers partial smart contracts or excludes key business logic.
No Public Audit Reports
HighClaims of being audited but no public audit reports available for verification.
Rushed Timeline
MediumVery short audit periods that don't allow for thorough security analysis.
Security Due Diligence Process
Step-by-step process to evaluate DeFi protocol security
Find Audit Reports
Locate publicly available audit reports on the protocol's website or documentation
Checklist:
- Check official website
- Look in documentation
- Search GitHub repositories
- Verify on audit firm websites
Verify Audit Authenticity
Confirm audit reports are legitimate and from reputable firms
Checklist:
- Cross-reference with audit firm
- Check digital signatures
- Verify report dates
- Confirm scope matches protocol
Analyze Findings
Review identified vulnerabilities and their severity levels
Checklist:
- Count critical/high issues
- Understand vulnerability impact
- Check remediation status
- Review audit firm comments
Check Remediation
Verify that identified issues have been properly addressed
Checklist:
- Compare before/after code
- Look for re-audit reports
- Check fix implementation
- Verify testing coverage
Protocol Security Examples
Real examples of security practices in major DeFi protocols
Aave
Audit Firms:
Last Audit:
Security Highlights:
- • Multiple audits
- • Continuous security
- • Bug bounty program
Uniswap V3
Audit Firms:
Last Audit:
Security Highlights:
- • Comprehensive coverage
- • Math verification
- • Public reports
Compound
Audit Firms:
Last Audit:
Security Highlights:
- • Regular audits
- • Community governance
- • Formal verification
DeFi.ly
Audit Firms:
Last Audit:
Security Highlights:
- • Formal verification planned
- • Economic audit included
- • Open source
Invest in Audited Protocols
Now that you understand security audits, explore DeFi protocols that prioritize security through comprehensive auditing and continuous monitoring.