DeFi and Web3

• Check the platform’s reputation• Review smart contract audits• Avoid excessive profitability promises

Stablecoins are cryptocurrencies tied to the value of stable assets, such as the US dollar, to reduce volatility.

A governance token is a token that allows holders to participate in decision-making regarding the platform's operations.

• Staking• Yield Farming• Providing liquidity

DeFi lacks centralized management and allows users to retain control over their assets.

DEX are platforms for exchanging cryptocurrencies without intermediaries.

• Vulnerabilities in smart contracts• High volatility• Fraudulent project

Yield farming is the process of providing liquidity to DeFi platforms to earn rewards.

Liquidity refers to the funds users provide to pools to ensure the platform's functionality.

Staking is the process of locking cryptocurrency to support the network's operation and earn rewards.