According to the source, frontier AI models demonstrate human-level capability in exploiting smart contracts, signaling a material security vector that traders should factor into DeFi risk management, source: the source. DeFi smart contracts have been the largest target category in crypto hacking by value, concentrating market risk on Ethereum-based protocols and related tokens, source: Chainalysis Crypto Crime Report 2024. Actionable watchpoints include tracking real-time security advisories from blockchain security teams and monitoring TVL shifts in major DeFi pools to assess potential spillover to ETH and DeFi token liquidity, source: CertiK Alert and DefiLlama.