Is SparkDex V3 Safe?
Risk Grade: C+ (39/100)
SparkDex V3 is rated as elevated risk — multiple novel mechanisms and notable interaction risks.
Moderate-to-elevated risk — proven exploit history on perps module and thin-chain liquidity concerns, partially offset by active security monitoring and multiple audit rounds
SparkDex V3 is the largest decentralized exchange on the Flare network, offering both spot token swaps with concentrated liquidity and perpetual futures trading. It manages about $43M in deposits. Its C+ risk grade reflects a real exploit on its perpetual trading module in August 2025, reliance on Flare's less-tested FTSO oracle, and the inherent risks of operating on a smaller blockchain with lower liquidity.
TVL
$6,000
Mechanisms
7
Interactions
5
Value Grade
C-
Key Risks for SparkDex V3 Users
The perpetual trading module was hacked in August 2025 via a reentrancy bug that let an attacker withdraw margin twice. While the team responded quickly and relaunched, this shows the code can have serious vulnerabilities
Operating on Flare means much thinner liquidity than major-chain DEXs. Large trades can move prices significantly, making it easier for attackers to manipulate prices or front-run your trades
The protocol depends on Flare's native FTSO oracle for price data, which is less battle-tested than Chainlink. If oracle prices are wrong, your positions could be unfairly liquidated
Top Risk Factors
- •SparkDEX Perpetual Exchange suffered a reentrancy exploit in August 2025 where an attacker drained funds via a fallback-function reentrant call to removeMargin
- •Concentrated liquidity on a low-liquidity L1 (Flare) amplifies impermanent loss and creates thin-orderbook manipulation risk
- •Heavy reliance on Flare Time Series Oracle (FTSO) for price feeds introduces single-chain oracle dependency with limited fallback options
Risk Score Breakdown
SparkDex V3's highest risk area is Track Record (8/15). Here's how each dimension contributes to the overall 39/100 score:
Read the Full SparkDex V3 Risk Report
This protocol has 2 collapse scenarios. 2 high-severity interaction risks identified. See the full mechanism classification, interaction matrix, and deep-dive recommendations.
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