SparkDex V3Micro-cap
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
Top Risks
1
SparkDEX Perpetual Exchange suffered a reentrancy exploit in August 2025 where an attacker drained funds via a fallback-function reentrant call to removeMargin
2
Concentrated liquidity on a low-liquidity L1 (Flare) amplifies impermanent loss and creates thin-orderbook manipulation risk
3
Heavy reliance on Flare Time Series Oracle (FTSO) for price feeds introduces single-chain oracle dependency with limited fallback options
Risk Breakdown
Frequently Asked Questions
Is SparkDex V3 safe to use?
SparkDex V3 receives a C+ risk grade (39/100) from Hindenrank, where lower scores indicate lower risk. 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.
What are the main risks of using SparkDex V3?
The key risks identified for SparkDex V3 are: (1) 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 (2) 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 (3) 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
What is SparkDex V3's risk score breakdown?
SparkDex V3 scores 39/100 across eight risk dimensions: Mechanism Novelty: 5/15, Interaction Severity: 10/20, Oracle Surface: 3/10, Documentation Gaps: 3/10, Track Record: 8/15, Scale Exposure: 3/10, Regulatory Risk: 2/10, Vitality Risk: 5/10. The highest risk area is Track Record at 8/15.
How does SparkDex V3 compare to other DEX protocols?
Among 111 rated DEX protocols on Hindenrank, SparkDex V3 ranks #78 by safety (lowest risk score = safest). Its 39/100 risk score and C+ grade place it among the riskier DEX protocols.
Has SparkDex V3 ever been hacked or exploited?
SparkDex V3 scores 8/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.
Last scanned 2026-02-23