Decentralized finance (DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain. DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts.[1] DeFi uses a layered architecture and highly composable building blocks.[2] Some applications promote high interest rates[1] but are subject to high risk.[3]