DeFi protocols feature certain risks, such as third-party smart contract tampering and the risk of borrow APYs rising dramatically within a short time period.
When compared with centralized finance, there are no practical dangers associated with DeFi lending. However, like anything else, DeFi, too, has risks associated with it. For example, there are certain smart contract risks that are present as well as the threat of APYs changing dramatically within a short time window.