7 Questions We Go Ask Before You Deposit For Any DeFi Project

Thousands of DeFi protocols dey launch every year. Most of dem dey fail. Small number dey thrive. The difference between the two dey usually clear — if you sabi wetin to look for.

This post no be sales pitch. Na checklist. The goal na to give you framework wey you fit use for any protocol wey you dey evaluate — Turbo Loop, the next farm wey go land for your timeline, or any chain wey you never hear about. We go use Turbo Loop as example for the end, but the questions dey important by themselves. If any protocol no fit answer all eight questions well, the answer na to waka away, no matter the brand wey dey for the landing page.

Make I drop quick note before the checklist: passing every question wey dey below no mean say risk don disappear. Smart contracts fit get bugs wey nobody don discover. Oracles fit fail. Markets fit move against strategy. Wetin the checklist dey do na to reduce the chance of catastrophic loss — the rug, the exploit, the slow drain — sharply downward. You still dey responsible to size your positions well and do your own diligence.

The 8-question DeFi diligence checklist

1. The contract don dey audited — and you fit read the report?

The first question na the easiest to fake. Every project dey talk say