DeFi Quiz

Decentralized finance (DeFi) provides access to a range of financial products without relying on a central authority

• True

• False

What does decentralized finance involve?

• Lending and borrowing assets to and from other users

• Decentralized exchanges

• Executing smart contracts

• All of the above

The Bitcoin blockchain is the foundation for the majority of decentralized finance

• True

• False

The most popular use for decentralized applications (dApps) is...

• Decentralized exchanges

• Sending NFTs

• Submitting applications to job and rental agencies

• None of the above

DEX stands for Deterministic Expansion

• True

• False

What is an Automated Market Maker?

• A protocol that automatically makes trades for a user

• A system that ensures there is always enough liquidity to make trades

• A code function that automatically lists new markets on an exchange

• All of the above

A liquidity pool is a decentralized pool of digital assets that is used to provide trading liquidity

• True

• False

The main advantage of a decentralized exchange is...

• Users own their private keys

• Increased privacy due to the lack of know your customer (KYC) controls

• Large range of low cap alt coins

• All of the above

Staking is a way to earn rewards through locking up cryptocurrency to secure a blockchain network

• True

• False

Staking rewards are usually paid out in...

• USDT

• BTC

• The cryptocurrency you are staking

• All of the above