What it means
A review of a smart contract's code by an outside security firm, looking for bugs before and after launch.
An audit lowers the chance of a bug but never removes it. Many exploited protocols had been audited.
How it works
Defied has no smart contracts of its own, so there's nothing of ours to audit. The markets in the app are audited protocols.
Related terms
| Term | What it means |
|---|---|
| Smart contract | A program that lives on a blockchain and runs exactly as written, holding and moving tokens by its own rules. |
| Exploit | An attack that uses a bug or design flaw in a smart contract to take money from it. |
| DeFi | Decentralised finance: lending, borrowing and exchanging that runs on public smart contracts instead of through a bank. |
This glossary explains terms in general. It isn't investment, tax or legal advice.