Economic Security Audits

Economic security audits focus on the financial integrity of a protocol by stress-testing its incentive structures, tokenomics, and derivative pricing models. Unlike technical audits that look for code bugs, these audits assess whether the system's game theory and financial logic are robust against manipulation.

They examine how rewards, penalties, and governance mechanisms influence user behavior and whether they could be exploited to cause a bank run or permanent loss of value. Auditors simulate various market cycles and liquidity scenarios to ensure the protocol remains economically sustainable even when asset prices are highly volatile.

This analysis is crucial for protocols that rely on algorithmic stability or complex derivatives, as it ensures the internal economy is balanced and resilient to malicious economic manipulation.