Smart contract audit

A smart contract audit is a manual and automated review of a contract's code, done before launch to find bugs, logic errors, and security holes that could let someone drain funds. It matters to readers because an audit is one of the few signals available for judging whether a protocol took security seriously before asking people to deposit money. Audits aren't guarantees, though; several hacked protocols had been audited already. For example, before its 2022 launch, the Aave-based protocol Euler Finance had been audited by three separate firms, yet a flaw in its lending logic still let an attacker take about $197 million in March 2023. Read the audit report itself, not just the badge, and check whether flagged issues were actually fixed.