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What are the risks at Liquidity Mining?
What are the risks at Liquidity Mining?
Updated over a week ago

If you prefer a video version, CEO Julian Hops also made a detailed video.

1. Smart Contract Risk

There is of course always the risk that there is some bug in the code of the Smart Contract that can be exploited. With DeFiChain, this risk is generally considered low (and much lower than with Ethereum), since the blockchain is non-turing-complete and hence there are much fewer potential errors.

2. Project Risk

Are there any backdoors? Is the project independently audited? Is it open source? In general, everything is fine for most large projects, because for example Uniswap and also DeFiChain are open source, everyone can check and verify the code themselves and the projects also regularly contract external security audits.

3. Impermanent Loss

The third and most complicated risk is that of an impermanent loss. This is explained in the following video:

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