Crypto Investing — Intermediate: DeFi Fundamentals

Decentralized Finance (DeFi) rebuilds financial services — lending, borrowing, trading, earning yield — as open smart contracts anyone can use. You keep custody and interact directly with protocols.

Common activities: lending assets to earn interest, borrowing against collateral, staking to help secure a network for rewards, and providing liquidity for trading fees. Each adds smart-contract risk (bugs/exploits) on top of market risk.

Key takeaways

• DeFi offers familiar financial services without intermediaries.
• Yield always comes with risk — usually smart-contract and market risk.
• Read audits and understand a protocol before depositing funds.

Educational disclaimer: This material is provided by Nieto Engineering Inc. for internal education only. It is not investment, financial, legal, or tax advice and is not a recommendation to buy, sell, or hold any asset. Cryptocurrency, equities, and prediction markets carry substantial risk, including total loss of capital. Past performance does not indicate future results. Always do your own research and consult a licensed professional before investing.