Exploitation in DeFi.

Balancer, a decentralized system that lets users create and trade pools of digital assets, was exploited for over $120 million this week.

The issue wasn't a single coding mistake but a sequence of interactions between contracts across multiple protocols.

In DeFi, smart contracts aren't isolated, but rather consistently interact. When logic between them diverges, even slightly, the system can behave in unintended ways.

Balancer had gone through multiple audits, but audits verify function, not every possible cross-protocol state.