The ABCs

What is DeFi?

Decentralized finance (DeFi) refers to a new financial ecosystem built on blockchain technology. Unlike traditional finance, DeFi eliminates the need for intermediaries like banks and financial institutions, empowering users to manage their assets and participate in various financial activities directly.

What are Perpetual Contracts?

Perpetual contracts are financial instruments that track the price of an underlying asset without a fixed settlement date. They allow traders to speculate on the future price movements of an asset using leverage, which can amplify both potential gains and losses.

Safety practices

Several overarching points warrant attention when engaging with blockchain applications:

  1. Prudent Caution: It is advisable to exercise careful discretion when engaging with any smart contract or blockchain application, given the inherent complexities and potential pitfalls.

  2. Risk Mitigation Efforts: Although strenuous efforts are made to minimize risks through rigorous testing, comprehensive audits, and incentivized bug-finding programs, the inherent nature of smart contract code leaves room for vulnerabilities.

  3. Prevalence of Phishing and Scams: Scams and fraudulent activities are pervasive, regardless of their connection to blockchain technology. Blockchain-specific phishing schemes are particularly prevalent

  4. Tactics in Blockchain Phishing: Blockchain-related phishing scams often employ deceitful tactics to coax users into divulging their private keys, seed phrases, or other sensitive information. They may also manipulate users into authorizing malicious transactions.

  5. Wallet Segmentation: Prudence dictates maintaining two distinct wallets—a primary one for secure storage of substantial holdings and funds, and a secondary wallet exclusively for interactions with new websites.

  6. Vigilant Transaction Validation: When interacting with new websites and endorsing transactions through your wallet, it is of paramount importance to scrutinize both the associated contract and the intended operation. Most wallets provide clear identification of the operation awaiting authorization."