Tokenomics In DeFi Staking

This report analyzes tokenomics flaws in DeFi staking systems through three case studies (SportsDao, UEarnPool, WarpStaking) where attackers used flash loans, helper/invitor contracts, and on-chain price manipulation to inflate staking rewards and extract funds. It identifies root causes—absence of a time factor or delay mechanism in reward formulas and using real-time AMM reserves as price inputs—details attack sequences and losses, and recommends integrating time-based reward calculations, delay mechanisms, and avoiding real-time reserve ratios for pricing to mitigate such exploits.