Tuesday Nov 11 2025 09:10
2 min
The decentralized finance (DeFi) landscape is rapidly evolving, but with it comes increased risk. Recent weeks have seen a series of high-profile security incidents, coupled with the exposure of underlying issues in certain protocols. This article aims to analyze these risks and provide recommendations on how to protect your assets.
We've recently seen the de-pegging of stablecoins like xUSD and USDX, raising questions about the safety of this type of asset. These stablecoins rely on complex strategies to maintain their value and generate high yields, but they often lack the necessary transparency. Investors should exercise extreme caution when dealing with these stablecoins.
Lending protocols and liquidity pools allow users to deposit stablecoins to earn yields. However, these pools are often managed by 'curators' who use complex strategies to achieve high returns. This can expose users to unnecessary risks, especially if the strategies are opaque or involve high leverage.
In light of these increasing risks, it's crucial to take steps to protect your assets. We recommend the following:
DeFi offers exciting opportunities, but it comes with significant risks. By understanding these risks and taking steps to protect your assets, you can take advantage of DeFi's opportunities without exposing yourself to unnecessary risk.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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Tuesday, 11 November 2025
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Tuesday, 11 November 2025
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