#DefiwithChrisAni
Defi series Part 4
Advantages and Disadvantages of DeFi
As we've already discussed in the previous teachings, DeFi offers a lot of advantages such as transparency, interoperability, decentralisation, free for all services, and flexible user experience,
Defi series Part 4
Advantages and Disadvantages of DeFi
As we've already discussed in the previous teachings, DeFi offers a lot of advantages such as transparency, interoperability, decentralisation, free for all services, and flexible user experience,
to name just a few. However there are also some risks you should be aware of.
The most important risk is that DeFi is still new and in its infancy and this means that things can go wrong.
The most important risk is that DeFi is still new and in its infancy and this means that things can go wrong.
Smart contracts have had issues in the past where people didn’t define the rules for certainservices correctly and hackers found creative ways to exploit existing loopholes in order to
steal money. Bugs in smart contracts and protocol changes can also affect
steal money. Bugs in smart contracts and protocol changes can also affect
the existing contracts.
Some DeFi services may be partially decentralised while still keeping some centralised
aspects that act as a backup if the smart contract fails.
To protect yourself from these risks, make sure to try out DeFi services with an amount you
Some DeFi services may be partially decentralised while still keeping some centralised
aspects that act as a backup if the smart contract fails.
To protect yourself from these risks, make sure to try out DeFi services with an amount you
can afford to lose in case anything goes wrong. Also, it’s important that you do your own research (DYOR) and understand how a product or service works before investing in it so
you can be aware of any issues that may come up.
you can be aware of any issues that may come up.
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