When you trade crypto on Uniswap, SushiSwap, or any other decentralized exchange, you’re using an automated market maker, a smart contract that sets prices using math instead of human traders. It’s supposed to be trustless, but AMM isn’t magic—it’s code. And code has bugs. Every time you add liquidity to a pool, you’re trusting that code won’t be exploited. But it has been—over and over again.
AMM vulnerabilities don’t come from hackers breaking into wallets. They come from flaws in how the system calculates prices. A liquidity pool exploit, a type of attack where hackers manipulate token prices using flash loans or fake trades can drain millions in minutes. In 2023, one exploit stole $20 million from a DeFi protocol because the AMM didn’t check if a token’s price had been artificially inflated. That’s not a glitch—it’s a design flaw. Smart contract risk, the chance that code has hidden weaknesses that attackers can trigger is the silent killer of DeFi. Most users think their funds are safe because the blockchain is secure. But the blockchain doesn’t care if the contract lets someone steal everything.
These aren’t theoretical risks. Posts in this collection show how tokens with zero volume, fake teams, or no audits are often tied to AMMs that were already exploited. You’ll see how a meme coin’s liquidity pool got drained because the AMM didn’t limit trade sizes. You’ll learn how a DeFi project’s tokenomics made it easy to pump and dump using flash loans. And you’ll find out why even big exchanges like Bitfinex and LCX avoid listing tokens with unverified AMMs.
What you won’t find here are hype-filled guides to "the next big AMM." Instead, you’ll get real breakdowns of what went wrong—so you can spot the same patterns before you invest. Whether you’re adding liquidity, trading a new token, or just trying not to lose money, understanding AMM vulnerabilities isn’t optional. It’s the difference between holding crypto and holding a liability.
AMM vulnerabilities like flash loan attacks, sandwich trades, and impermanent loss manipulation are draining millions from DeFi users. Learn how these exploits work and how to protect yourself.
