Risks of Decentralized Finance
                     Risks of Decentralized Finance
Favorite Target of Hackers
DeFi Development Services applications can manage a lot, a 
lot, of money in their smart contracts.
This makes them a target of interest to cybercriminals, who are 
on the trail of businesses vulnerable to inadvertent attacks. 
Inadvertent or intentional encoding error
Smart contracts make it possible to execute vital operations for 
these platforms, such as money transfer, token custody or 
credit settlement.
An error in coding a smart contract could lock up customer 
tokens with no possible solutions. 
Also, malicious entities that make life in the ecosystem, could 
use their contracts and the inexperience of users, to get hold of 
money from their customers without them noticing.
Frauds
Due to the explosion in popularity of DeFi Development, 
phishing attacks (identity theft) or fraudulent platforms that seek 
to replace the original ones have also increased.
Whether it's downloading a malicious app, launching a fictitious 
token, or sending virus emails capable of stealing personal 
information, users in the ecosystem need to be alert to potential 
sources of theft or phishing.
Errors of Use
One of the characteristics that most concerns users of 
decentralized networks is that, due to the elimination of 
intermediaries, the responsibility for the service is transferred to 
the users. 
If users do not take the necessary measures to secure their 
finances or do not have sufficient knowledge to manipulate 
these assets, it may happen that they lose access to their 
wallets, transfer their money improperly or do not operate one 
of these financial services correctly. 
Insider Trading
And to understand how important the management of 
information and knowledge is in the DeFi market, one must also 
know that this ecosystem is vulnerable to a practice known as 
“insider trading” or “trading from within”.
Insider trading is a risk that all markets that are just being 
formed run, since many creators and employees of these 
businesses tend to use information that they have access to 
due to their privileged position to make profitable investments. 
Accumulation of Interoperability Vulnerabilities
The DeFi market is considered one of the riskiest in the 
cryptocurrency community due to its volatility and accumulation 
of financial risks.
Due to the fact that it is an interoperable ecosystem, with high 
composability capabilities, the operation of many of its 
applications depends on other tools with which it interconnects.
For example, if something goes wrong with the MakerDAO 
protocol, lending platforms, decentralized exchanges, and 
liquidity pools could also be affected by the issue, since Maker 
underlies many of them. 
Conclusion
Cryptocurrencies have brought about a change in the 
functioning of money, as we knew it. 
DeFi Development Company now proposes to take this one 
step further and bring the different elements of the conventional 
banking system into a fully digital and decentralized 
environment.
All this eliminating the need for trusted third parties, eliminating 
the additional costs of the conventional banking system, 
reducing management times and reducing tedious bureaucracy.