Does DeFi Put Your Portfolio at Risk?
As cryptocurrency prices continue to soar, decentralized finance (DeFi) is becoming more popular, as well.
DeFi is generally defined as the process of executing financial transactions without an intermediary, such as a central bank. Through the use of smart contracts, two individuals can transfer funds, lend or borrow money, and earn interest on loans without having to go through a financial institution.
Supporters of DeFi believe it could someday become mainstream, potentially removing the need for central banks and other financial institutions. Could that put your portfolio at risk? Here's what you need to know.
Source Fool.com
