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5 Risks in DeFi and How to Mitigate Them
Smart Contract Vulnerabilities: Mitigate by conducting thorough audits using reputable security firms and maintaining a bug bounty program
Smart Contract Vulnerabilities: Mitigate by conducting thorough audits using reputable security firms and maintaining a bug bounty program
Impermanent Loss: Reduce risk by choosing stable pairs or utilizing DeFi platforms that offer insurance or impermanent loss protection
Liquidity Issues: Ensure platforms have sufficient liquidity provisions and consider diversifying investments across multiple pools
Regulatory Uncertainty: Stay informed about global regulatory changes and opt for DeFi services that prioritize compliance and transparency
Operational Risks: Safeguard operations by using multi-factor authentication, secure wallets, and keeping software up to date to prevent exploits