The Cork Protocol exploit shows how even well-designed DeFi systems can be broken by inadequate parameter checks and overly permissive components like hooks. Attackers can exploit these flaws to mint unbacked tokens and drain value. Users and builders must prioritize access control, validation, and auditability to avoid repeating these failures.
Q1: What was the root cause of the Cork Protocol exploit?
A1: Lack of parameter validation in hook contracts
Q2: What does Cork Protocol use to hedge depeg risk?
A2: Cover Tokens and Depeg Swaps
Q3: What is a ‘hook’ in Uniswap v4?
A3: An external smart contract attached to a pool
Q4: How can users spot risky protocols?
A4: If they use unvalidated external contracts and hooks
