Too Long; Didn't Read
Decentralized finance (DeFi) is an ecosystem of financial applications which aims to improve the drawbacks of traditional finance by being more transparent, open source, and permissionless. The risks that come with DeFi include but are not limited to smart contract risks, admin key risks, governance risks, and oracle risks. But our focus is going to be on self-custody risks, which deal with how we handle our noncustodial hot wallets. Hot wallets are prone to hacks, and these hacks are usually directed toward inexperienced users.