#DeFiGetsGraded #DeFiGetsGraded: How Not to Burn Out on Decentralized Finance 😱
📈 Decentralized Finance (#DeFi) is the Wild West of the modern financial system. You can earn millions here, but you can also lose everything in a second.
If you are a newcomer and want to avoid common mistakes, here are 3 main criteria for evaluating DeFi projects:
* Security: Has the project undergone an audit? Who conducted it? Check the contracts for vulnerabilities. Do not trust projects without a public audit.
* Tokenomics: What is the token distribution? Is there too much held by the developers? Carefully study how inflation works and whether it will lead to the devaluation of your stake.
* Community: What is the mood in the community? Are there active discussions? A strong community is the key to the stability and development of the project.
Remember: do your own research (DYOR) and do not invest more than you are willing to lose.
What do you consider the most important when evaluating a DeFi project? Write in the comments! 👇
