Assessment of the risks of using smart contracts in cryptocurrency transactions on domestic capital markets
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Date
2025-10-31
Journal Title
Journal ISSN
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Publisher
Little Lion Scientific
Abstract
The study's relevance is determined by the critical dependence of cryptocurrency market stability on the technical reliability of smart contracts and the increasing risks of financial losses due to their defects. Aim: The aim of the study is to formalize the ranking of technical vulnerabilities of smart contracts by their impact on the economic stability of domestic capital markets through systematization, simulation modelling, and quantitative assessment of financial indicators. Methods: The research used the following techniques: vulnerability typing, simulation modelling, financial analytics, and comparative analysis.
Obtained results: The study confirmed the critical impact of smart contract technical vulnerabilities on the financial stability of the markets, with peak VaR of up to -68.5% and liquidity deterioration of over -80% for reentrancy attack, delegatecall injection, and oracle manipulation. The risks were reduced by more than half after implementing multi-level optimisations, demonstrating the effectiveness of comprehensive mitigation to stabilise key financial indicators. Academic novelty of the study: The academic novelty of the study is the formalized classification of technical vulnerabilities of smart contracts and the first empirical assessment of their impact on the economic stability of capital markets based on comprehensive financial and economic metrics, which extends the theory of DeFi structural risks. Prospects for future research: Prospects for further research include the development of a pilot project for technical optimization of smart contracts with a focus on increasing resilience to logical and synchronization defects.
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Keywords
economic growth, reentrancy, delegatecall injection, oracle manipulation, integer overflow, front-running, dos attacks
Citation
Assessment of the risks of using smart contracts in cryptocurrency transactions on domestic capital markets / Oleksii Mostovenko, Volodymyr Tsap, Volodymyr Borkovych [еt al.] // Journal of Theoretical and Applied Information Technology (JATIT) : scientific journal / [ed. board: Sh. Ghayyur (ed.-in-chief) еt al.]. – Islamabad : Little Lion Scientific, 2025. – Vol. 103, № 20 (31st October). – P. 8581–8593.