Because smart contracts handle billions of dollars and cannot be easily changed once they are deployed, ensuring their security is a top priority. Security audits are deep technical reviews conducted by independent experts to find and fix any bugs or vulnerabilities in the code. These auditors look for common attack vectors like re-entrancy attacks or logic errors that could allow a hacker to steal funds. For any decentralized finance project, having a high-quality audit from a reputable firm is a sign of legitimacy and helps to build trust with users. However, even with an audit, there is always a risk that a new type of exploit could be found. This has led to the rise of “bug bounties,” where projects offer large rewards to ethical hackers who find and report vulnerabilities. This constant focus on security is what allows the ecosystem to grow safely in such a hostile environment.