Decentralized Finance (DeFi) Quiz

This quiz consists of 12 questions about decentralized finance (DeFi), covering topics such as DeFi protocols, yield farming, liquidity pools, and the risks associated with DeFi. The questions include multiple-choice and true/false questions to assess understanding of this emerging sector within the cryptocurrency space.

What is the primary function of yield farming?

Staking tokens for rewards

Generating high returns on investment

Lending and borrowing cryptocurrencies

What are the risks associated with liquidity pools?

Low volatility

Guaranteed returns

Impermanent loss

What is the purpose of a DeFi protocol?

To regulate financial markets

To centralize financial transactions

To provide decentralized financial services