Curriculum·J306 Smart Contract Risk for Non-Developers·96 min
Audits
By the end of this lesson you can
- →State what an audit covers and what it explicitly does not
- →Compute what a critical bug surviving many audits implies about catch rate or independence
- →Read an audit report for scope and date rather than for its conclusion
- →Separate implementation risk, which audits address, from design risk, which they do not
Junior · account required
This lesson opens with Euler Finance, 13 March 2023.
Orientation and Freshman are open to everyone, no account needed. From Sophomore onward we ask you to sign in, because progress through the later levels only means anything if it is tracked against a record.
It is free. We do not sell the list and there is nothing to buy at the end of it.
Sources and review
- https://www.tradingview.com/news/cointelegraph:47125b808094b:0/
- https://www.chainalysis.com/blog/euler-finance-flash-loan-attack/
- https://www.theblock.co/post/219196/euler-finance-flash-loan-attacked-for-an-estimated-197-million
- https://blocksec.com/blog/euler-finance-incident-the-largest-hack-of-2023
Confidence high·Volatility low·Reviewed 2026-08-06·Owner unassigned
Contested
The count of ten audits is the protocol founder's own statement as reported afterwards, and the named firms and dates come from the protocol's published materials. The lesson's argument holds at any count above about five, and does not depend on the exact figure.
This lesson is not an argument that audits are worthless. They reliably catch common implementation classes and they force specification, both of which are real. The argument is about what the marginal audit buys and about which risk categories are outside the exercise entirely.