🎉 3/3! Congratulations!
You earned 100 Diamonds!
Some or All answers are incorrect
Try Again
🎉 5/5! All Correct!
But you have already claimed this reward!
Learn & Earn
Earn 100 Diamonds for every perfect score!
Lesson # 4
Yield vs Risk: How to Assess On-Chain Financial Products
Blockchain Basics
1. Which of the following is a major risk when lending stablecoins in DeFi protocols like Aave or Compound?
A. Price slippage
B. Slashing penalties
C. Oracle manipulation
D. Impermanent loss
2. In Proof-of-Stake (PoS) blockchains, real yield from staking typically comes from:
A. Token airdrops
B. Network usage fees and block rewards
C. Flash loan premiums
D. LP farming returns
3. Why does impermanent loss occur in LP farming?
A. Because the APY decreases when volume drops
B. When token prices diverge, altering your token balance
C. If the protocol stops issuing farming rewards
D. When transaction fees fall below a threshold
4. Which of the following is the strongest signal of real yield in a DeFi protocol?
A. Yield paid in newly minted governance tokens
B. Returns remain constant even during bear markets
C. APY advertised above 1,000%
D. Daily token emissions increase over time
5. You’re comparing Aave lending vs. a PancakeSwap BNB/CAKE LP. Which of the following statements is true?
A. LP farming always earns more than lending
B. Aave returns are more volatile than LP farming
C. Impermanent loss risk does not exist in Aave lending
D. Both earn yield only through token inflation