# Notes

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Security Pitfalls & Best Practices 201
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* ERC20 transfer and transferFrom: Should return a boolean. Several tokens do not return a boolean on these functions. As a result, their calls in the contract might fail. (See [here](https://github.com/crytic/building-secure-contracts/blob/master/development-guidelines/token_integration.md#erc-conformity))
* ERC777 hooks: ERC777 tokens have the concept of a hook function that is called before any calls to send, transfer, operatorSend, minting and burning. While these hooks enable a lot of interesting use cases, care should be taken to make sure they do not make external calls because that can lead to reentrancies. (See [here](https://github.com/crytic/building-secure-contracts/blob/master/development-guidelines/token_integration.md#erc-conformity))
* Token Deflation via fees: Transfer and transferFrom should not take a fee. Deflationary tokens can lead to unexpected behavior. (See [here](https://github.com/crytic/building-secure-contracts/blob/master/development-guidelines/token_integration.md#erc-conformity))
* Token Inflation via interest: Potential interest earned from the token should be taken into account. Some tokens distribute interest to token holders. This interest might be trapped in the contract if not taken into account. (See [here](https://github.com/crytic/building-secure-contracts/blob/master/development-guidelines/token_integration.md#erc-conformity))
