CAUSES OF SECURITY VULNERABILITIES IN DeFi PLATFORMS AND PROPOSED SOLUTIONS

Abstract

This study investigates the rising security vulnerabilities in decentralized finance (DeFi) platforms from both technical and operational perspectives. Through literature review, case studies, and a comparative platform analysis, the research identifies the root causes, user impacts, and mitigation strategies for common security issues. Prominent incidents such as Ronin Network, Poly Network, Mango Markets, and Curve Finance are examined in depth, while security strategies of major DeFi platforms such as Aave, Compound, Uniswap, and Synthetix are compared. The study also discusses the implications of new technological developments like Ethereum Layer-2 solutions, Zero-Knowledge rollups, and account abstraction mechanisms on DeFi security. Findings emphasize that achieving a sustainable DeFi ecosystem requires a holistic approach involving not only technical safeguards but also transparent governance, user education and robust audit processes.