Lecture 4: The Risks in DeFi (Don’t Ignore This!)

Biggest DeFi Risks:

▶️ Smart contract bugs (code errors that hackers can exploit)

▶️ Impermanent loss (losing money while providing liquidity)

▶️ Rug pulls (scammers create fake projects and steal users' funds)

Example:

▶️ Imagine you put $1,000 into a new DeFi app.

▶️ If hackers find a bug in the smart contract, you could lose your money instantly.

Pro tip:

▶️ Stick to trusted projects (Uniswap, Aave, Maker)

▶️ Always DYOR (Do Your Own Research)

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