  Decentralized Finance (DeFi) is a new financial industry built on blockchain
technologies. Decentralized financial services have consequently increased the
ability to lend, borrow, and invest in decentralized investment vehicles,
allowing investors to bypass third party intermediaries. DeFi's promise is to
reduce the cost of transaction and management fees whilst increasing trust
between agents of the Financial Industry 3.0. This paper provides an overview
of the different components of DeFi, as well as the risks involved in investing
through these new vehicles. We will also propose an allocation methodology
which will integrate and quantify these risks.

Portfolio Management;General Finance