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dragonked2 / economic-attacks

Economic modeling — flash-loan capital, profit equations, manipulation cost, liquidation games. Load before calling anything an exploit.

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ECONOMIC ATTACKS

Mandatory equation

netProfit = attackerGain - attackerCosts - requiredRepayment

Itemize: attacker capital, temporary (flash) capital and fees,
liquidity required vs available, slippage, gas, protocol loss,
attacker gain, repayment. Reject netProfit <= 0 and attacks needing
liquidity that does not exist.

Flash-loan pattern (capital, not bug)

flash liquidity → manipulation → protocol interaction →
extraction → restoration → repayment → profit

Ask: does temporary capital let the attacker hold a manipulated variable
long enough to violate an invariant? Atomicity cuts both ways — the
protocol interaction and the restoration happen in one transaction, so
the vulnerable window must be inside it.

Lenses

  • Liquidation games: discount vs bonus, MEV competition, dust positions.
  • Oracle lag arbitrage between markets.
  • Governance rented per block vs proposal value.
  • Fee/reward farming exceeding intended emission rate.

Rule

Economics without numbers is narrative. Every economic finding ships
with the arithmetic or it ships as a hypothesis, never as confirmed.