Farcaster

Challenges and Risks

While DeFi offers many advantages, it also comes with risks:

Smart Contract Vulnerabilities: Bugs or exploits in smart contracts can lead to significant losses (e.g., the $600M Poly Network hack).

Regulatory Uncertainty: Governments are still figuring out how to regulate DeFi, which could lead to restrictions or bans in certain jurisdictions.

Volatility: Crypto assets are highly volatile, which can impact the stability of DeFi platforms.

User Error: Since DeFi is non-custodial, users are responsible for their own security. Mistakes like losing private keys or sending funds to the wrong address can result in irreversible losses.

Experience some bugs with metamask won't function at all 🥜🥜