Smart Contract Audit Methodology Explained (Updated 2025)

Summarize:

How Softstack Delivers End-to-End Protection for DeFi, Stablecoins, and Web3 Protocols

Security breaches in Web3 are growing fast. In a single year, DeFi exploits alone caused over $2 billion in losses. These hacks often stem from logic flaws, overlooked access controls, or unsafe integrations that a smart contract audit could have prevented.

If you’re building a protocol, a thorough and reliable audit process is critical. Not all audits are equal. At Softstack, our methodology is designed to uncover both surface-level bugs and deep architectural risks. This guide explains how we secure smart contracts through a structured, multi-layered approach—trusted by clients like Ripple, TON, Siemens, HAL Privatbank, BitGo and many more.

1. Discovery and Scoping

Every audit begins with understanding your codebase and defining what we will evaluate:

  • Collect repositories, test suites, and deployment scripts

  • Identify third-party libraries and on-chain dependencies

  • Define scope: contracts, lines of code, critical logic

  • Confirm deliverables, timelines, and communication flow

2. Automated Vulnerability Analysis

Our auditors use a range of tools to detect common weaknesses early:

  • Slither and MythX run over 1,000 checks in minutes

  • Dependencies are scanned for outdated or vulnerable packages

  • Solidcheck performs AI-powered scans and GitHub-integrated vulnerability discovery

3. Manual Code Review

Tooling is powerful, but manual review catches the most dangerous risks:

  • Line-by-line logic inspection of every contract

  • Focused analysis of access control, fees, token mechanics, and admin roles

  • Manual reviews identify up to 70% of critical issues missed by automation

4. Security Research and Attack Simulation

We model real-world attack scenarios to stress test your code:

  • Forked mainnet simulations: flash loans, MEV, oracle spoofing

  • Governance takeovers and admin permission escalations

  • Liquidity drain and slippage testing under heavy load

5. Formal Verification (Optional but Recommended)

For mission-critical DeFi or stablecoin modules:

  • Mathematical validation of logic using Certora, Scribble, and others

  • Verifies that properties like access controls and balances behave as expected

  • Often used to certify AMMs, lending protocols, and regulatory components

6. Audit Reporting

You receive a clear, structured, and actionable report:

  • Issues ranked by severity: critical, medium, low, informational

  • Each finding includes:

    • Technical description

    • Risk assessment

    • CVSS score and exploit scenario

    • Code fix recommendation

7. Fix Verification and Certification

Once you implement our recommendations:

  • We re-audit changed code and rerun tests

  • Manual validation confirms the resolution of each issue

  • You receive a final certification letter for compliance, investors, and listings

8. Ongoing Security Monitoring

Security is not a one-time event. We offer long-term protection via:

  • Mini-audits for new deployments, parameter changes, or feature additions

  • Bug bounty support via platforms like Immunefi

  • On-chain monitors for suspicious activity, upgrade proposals, or governance events

Why Choose Softstack?

We combine deep technical expertise with industry-leading transparency. Our smart contract audit methodology is trusted by over 1,200 protocols with zero post-audit exploits since 2017.

Whether you’re launching a stablecoin, DeFi protocol, or tokenized asset platform, we help ensure your project is secure, compliant, and ready for growth.

Partner with Softstack

Softstack is a German Web3 development and auditing firm with over 1,200 zero exploit audits since 2017. We deliver transparent, hands-on support from scoping through verification. Whether you are a seed stage startup or an enterprise protocol, we help you launch with confidence.

Ready to get started?

📞 Book a free consultation at https://calendly.com/softstack

OR

📤 Email hello@softstack.io with a link to your code repository so we can review your codebase and get you an accurate quotation.

Would you recommend Softstack to fellow Web3 builders?

Join our Service Partner Program (SPP) and provide your network with a trustworthy partner.

✅ Up to 20 percent referral commission
✅ Fast tracked onboarding
✅ Preferential rates
✅ Over 1 million dollars in partner savings via https://deals.softstack.io
✅ Lead sharing and co marketing support

👉 https://softstack.io/service-partner-program-spp

📁 Also available on GitHub: Smart Contract Audit Methodology Explained

Frequently Asked Questions

1. What is a smart contract audit?

A smart contract audit checks your code for bugs, vulnerabilities, and logic flaws. It helps prevent exploits and builds trust with users.

2. How is an audit performed?

Auditors use both automated tools and manual review to analyze the code. They then provide a report with issues, risk levels, and recommendations.

3. Why does manual review matter?

Automated tools miss complex issues like business logic flaws. Manual review helps catch deeper bugs that could lead to major exploits.

Share via:

Picture of Yannik Heinze

Yannik Heinze

CEO at softstack, Web3 veteran and mentor.

Further Insights

Dive into our in-depth analyses and discover how Web3 technologies are transforming the digital landscape,
unlocking new avenues for decentralized innovation.