How to Read a Smart Contract
You do not need to be a developer to understand basic smart contract safety. Here is how to verify what you are interacting with.
What to Look For
| Element | Safe | Risky |
|---|---|---|
| . . . . - | . . . | . . . - |
| Verified | Yes | No |
| Proxy | Transparent | Hidden |
| Admin | Multisig | EOA |
| Upgradeable | Timelocked | Instant |
Key Functions to Check
- approve(): Token spending permission
- transfer(): Moving your tokens
- withdraw(): Taking back funds
- Admin functions: Who can change things
. -
Verify contracts on Fensory. Safety scores for protocols.[Start Tracking →](https://www.fensory.com)
Step-by-Step Instructions
1
Find Contract on Explorer
Go to Etherscan/Arbiscan and paste contract address.
Tips
- ✓Get address from official protocol docs
2
Check Verification Status
Look for green checkmark and Source Code tab.
Warnings
- ⚠Unverified contracts are major red flag
3
Find Key Functions
Look for approve, transfer, withdraw in the code.
Tips
- ✓Read tab shows more readable format
4
Check Admin Controls
Search for owner, admin, or onlyOwner in code.
Tips
- ✓Look for who can call restricted functions
5
Verify Multisig
Check if admin address is a multisig (Gnosis Safe).
Tips
- ✓Click admin address to see if it is a contract
6
Use Contract Scanners
Tools like Token Sniffer can flag common issues.
Tips
- ✓Automated checks are good first filter