How to distinguish a promising DeFi protocol from a scam?
DeFi is rapidly developing, but among hundreds of projects, there are many scams.
Here are the signs that you are facing a real project:
Open and audited code. If the contract is closed, it is a red flag.
Presence of a team and partners. It is better if the team is not anonymous and collaborates with other DeFi protocols.
Normal profitability. If the project promises 1000% annual returns with no risk, run away.
Presence on aggregators like DefiLlama, CoinGecko: this adds credibility.
Do not invest just for the “pretty cover,” first research thoroughly.
