Top 3 Risks of DeFi Lending & How to Mitigate Them
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Decentralized Finance (DeFi) lending eliminates intermediaries, making it accessible to everyone. However, using DeFi comes with risks like smart contract vulnerabilities, liquidity fluctuations, and regulatory challenges. To mitigate these risks, users should use secure platforms that have undergone security audits, diversify their lending and borrowing across multiple platforms, and comply with regulations in their jurisdiction. Additionally, seeking out platforms that improve liquidity for users, like Sturdy's dynamic emission liquidity mining, can create a stable ecosystem.