1. The main risks faced by the DeFi field:
The security of the underlying smart contract of the protocol: This is the biggest risk in DeFi. Smart contract vulnerabilities may lead to attacks on the protocol and theft of funds
The reputation risk of the project party: The project party may run away (rug pull) and other situations, affecting the security of user funds
Regulatory risk: As the scale of DeFi expands, the attention of governments and regulators in various countries increases, and it may face stricter regulatory requirements in the future, involving compliance issues such as KYC and AML