Critical Security Flaw Uncovered in Fusion Project's Smart Contract Architecture

MevTears · 2026-01-12T20:07:48+00:00

Security researchers at SlowMist have uncovered a critical vulnerability in the Fusion project's smart contract architecture, allowing malicious actors to exploit external function calls through delegated contracts. This flaw enables the creation of rogue contracts targeting PlasmaVault, emphasizing the need for rigorous auditing and improved security measures in blockchain projects.

MevTears

2026-01-12 20:07:48

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Security researchers at SlowMist have raised significant concerns about a fundamental vulnerability affecting the Fusion project. Through their MistEye detection system, the team has identified suspicious activities that trace back to a critical architectural flaw in the core smart contract infrastructure.

The vulnerability stems from a delegated contract mechanism that relies on EOA (Externally Owned Account) control via the EIP-7702 standard. This delegation architecture contains a dangerous flaw that permits unrestricted external function calls, essentially leaving the door open for malicious actors to intervene.

What makes this particularly alarming is the attack vector it enables. Bad actors can leverage this flaw to instantiate and deploy rogue circuit breaker contracts specifically targeting PlasmaVault. By controlling these intermediary contracts, attackers gain a pathway to siphon assets directly from the vault infrastructure.

The incident highlights a broader concern within the blockchain space: the risks associated with delegated contract permissions. When foundational contracts depend on EOA-controlled delegation without proper safeguards, they become attractive targets for sophisticated exploits.

SlowMist’s disclosure on the X platform signals the importance of rigorous smart contract auditing before deployment. The Fusion project team will need to address this flaw promptly to prevent potential fund extraction. This serves as a reminder for other projects: architectural decisions around contract delegation and permission management require extra scrutiny and layered security validation.

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