Rather than an institution, DeFi relies on smart contracts that anyone can interact with directly. That openness can be powerful, but it also brings smart-contract risk, high volatility and very little consumer protection.
DeFi is best approached as advanced territory: transparent and permissionless, yet unforgiving of mistakes.
DeFi Basics and Risks
Key takeaways
- DeFi recreates services like trading and lending using smart contracts instead of banks.
- Anyone can use it without permission, but there is little safety net if things go wrong.
- Its risks include code exploits, sharp price moves, and irreversible mistakes.
DeFi — часто задаваемые вопросы
What can I do with DeFi?
Swap tokens, lend or borrow, and earn yield, all through apps that run on a blockchain rather than a company.
Why is DeFi considered risky?
Contracts can be exploited, funds are often unrecoverable, and there is usually no support line if you slip up.
This definition is educational and not financial advice. Crypto is volatile and high-risk — always do your own research.
Related terms
Decentralised Exchange (DEX)Dollar-Cost Averaging (DCA)Bitcoin Dominance Все термины →
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