Smart Contract Audit Checklist for DeFi Investors (2025)

Before interacting with any DeFi protocol, investors should evaluate its smart contract safety. This checklist highlights the most important items to review.

Audit Verification

• Public and reputable audit report
• Multiple audits preferred

Contract Ownership & Controls

• Multi-sig governance
• Time-locked upgrades
• Minimal admin permissions

Oracle Framework

• Trusted price feeds (e.g., Chainlink)
• No manipulable AMM-driven oracles for sensitive assets

Liquidity Structure

• Locked liquidity
• Sustained TVL growth or stability

Code Behavior

• Upgradeable contracts?
• Proxy logic risks?

Never deposit into a protocol without verifying its code, audit history, and governance design.