Recently one of our user asked “is it safe to connect my MetaMask wallet to a DeFi site that is not audited and is not so well known. Is it safe to connect wallet to DeFi platform? Now the question is is it safe to connect your wallet to DeFi platforms especially connecting and giving access to some not so well known unaudited DeFi platform. Some of the popular wallets that users use to connect to these DeFi platforms are MetaMask, Trust wallet and Coinbase wallet. Only web3 wallets that allows users to connect to the decentralized web and interact with the DApps can be used. To use these DeFi services that is whether you wish to trade, swap, stake or yield farm you need to connect your wallet. Payments – Services providing cheap and fast payment solutions in a decentralized way.Derivatives trading – Applications offering complex financial instruments such margin trading, options and futures trading.DEX – Decentralized exchange service where users can exchange cryptocurrencies without any central authority.Borrowing – Users borrow cryptocurrency by depositing securities and then paying a loan interest.Lending – Users lend their cryptocurrency and earn interest on them.All these applications that are built on top of the Ethereum network for the purpose of hosting DeFi applications have different benefits. But only in 2020 this subject came to the center of the cryptocurrency space.Ĭurrently a wave of new applications are being build everyday providing all kinds of financial services which was previously limited to the traditional banking sector.
There are many DeFi platforms that have been in circulation for years. You all know that DeFi (Decentralized Finance) is the hottest topic right now in the blockchain space.
This is a quick topic on the security of the DeFi platforms.
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