What is DeFi and is it safe to use?

Only use well-audited, battle-tested protocols like Uniswap, Aave, Compound. Never put more than you can afford to lose. The high APY on unknown protocols is the bait — the rug pull is the trap.

DeFi (Decentralised Finance) protocols let you earn yield, lend, borrow, and trade without banks or centralised exchanges. The risks: smart contract bugs, impermanent loss, rug pulls, liquidation.