Recently, there have been more security incidents involving smart contracts in the crypto space. Hackers exploited uninitialized smart contract vulnerabilities to transfer a total of 95 ETH in one go, worth approximately $280,000, and ultimately these funds flowed to Tornado Cash. Although this tactic is not new, each occurrence highlights the same issue—the security audits of on-chain project contracts are often just a formality.

This incident itself did not cause much turbulence in the overall market. The amount involved is not insignificant, but in a market with daily trading volumes in the billions, it’s just a drop in the bucket. What is truly worth vigilance is the underlying problem: many new projects do not conduct thorough security audits before launch, and some complex protocols are even rushed to open without being rigorously audited by professional institutions. The result? A large number of retail investors are attracted by high yields and end up stepping into the pitfalls of contract vulnerabilities.

How can one avoid becoming a "vulnerability prey"? Here are three lines of defense to keep in mind:

First, stay away from contract projects that you do not understand. Especially those that have just launched, boast huge marketing campaigns, but whose code has never been endorsed by reputable auditing firms. No matter how tempting the returns, hold back.

Second, be extra cautious with authorization and delegation functions. Permissions are easy to grant but difficult to revoke. Once the authorization limit is set too high, the risk is greatly amplified.

Third, do not put all your assets into a single protocol. Diversify your funds across multiple platforms to spread risk and prevent single points of failure.

Opportunities and traps often go hand in hand. The crypto world is not short of stories; what’s lacking is clarity. A sense of security is the best shield for profits.