DeFi 🏦

DeFi is a set of financial services run through blockchain-based smart contracts. People can trade, lend, borrow, stake, or move assets without a traditional bank running each transaction, but protocols still depend on code, governance, price data, and user interfaces.

Common sources are interest paid by borrowers, trading fees, staking rewards, and token incentives. Those sources carry different risks. A high displayed yield is not free money and can shrink quickly when incentives, demand, or token prices change.

No. TVL shows how much value is deposited, not whether the contracts, oracle design, governance, or withdrawal path are safe. Large protocols can still have concentrated controls or fail under unusual market stress.

Yes. Smart-contract bugs, oracle failures, liquidations, bridge failures, depegs, and withdrawal limits can add losses beyond the market move. The relevant risks depend on every protocol and asset in the route.