| dc.description.abstract | Decentralized Finance (DeFi) in blockchain application means cryptocurrency- related financial activities that operate based on smart contract and blockchain protocol. DeFi has thrived on rapid development because yield farming appearance and lack of financial supervisory service since 2020. In recent years, more and more people join DeFi aggressively because of its high return, but DeFi combines Finance and Information Technology domain knowledge so that it is difficult to realize completely and avoid investment risk in advance. This study was based on DeFi development status and significant issues between 2017 to 2022 June and chose 8 DeFi investment types (Cryptocurrency and Stablecoin Investment, Leveraged Yield Farming, Time Deposits, Dollar Cost Averaging, Grid Trading, Yield Farming, Leveraged Yield Farming, and Initial Coin Offering) to analyze systematic, unsystematic and technical risk. According to risk tolerance, macro-economic environment and commitment to invest status, we provided 5 different types of investment portfolio for DeFi participants. In the end of this study, we observed and suggested that first, development of DeFi will be complete because of the government′s supervision. Second, choose trustworthy cryptocurrency exchanges as your DeFi partner. Last but not least, high return high risk (especially in DeFi). DeFi ecosystem needs to contract and improve continuously, but it is the right way to promote traditional financial activities and internet technology development. | en_US |