Security Challenges in Cross-Chain DeFi Applications

Abstract

Cross-chain decentralized finance ( DeFi) applications enable the seamless transfer of assets and data across diverse blockchain networks, thereby enhancing liquidity and user flexibility. However, the distributed nature and inter-operability of these networks introduce significant security challenges, ranging from double-spending and smart contract vulnerabilities to mismatches in consensus mechanisms and privacy risks. In this survey, we introduce a novel review about the recent literature that explores these multifaceted challenges. We categorize the research based on attack vectors and the security requirements of cross-chain systems, discuss state-of-the-art solutions including advanced cryptographic techniques and rigorous auditing practices, and outline open problems that warrant further explorations. Our work provides a comprehensive analysis of the current security landscape in cross-chain DeFi and emphasizes future research directions.