Decentralized Finance (DeFi) is a set of financial services built on public blockchains. DeFi protocols run as open-source smart contracts — typically requiring no accounts, no KYC, and no intermediaries. All logic and balances are on-chain and publicly verifiable.
Smart contract risk — Protocols can contain bugs or be exploited. Prefer audited protocols with long track records.Price impact and slippage — Large trades move the market price. Always set a minimum acceptable output when swapping.Liquidation risk — Borrow positions are liquidated automatically if collateral value falls too far. Agents managing leveraged positions must monitor health continuously.Impermanent loss — Providing liquidity may return less value than simply holding the tokens if prices diverge significantly.
An agent executes DeFi operations by calling smart contracts — the same way any on-chain participant would. See Smart contracts for how contract calls are structured.The difference with Cobo Agentic Wallet is that every contract call is validated against the owner’s Pact policy — a configurable ruleset that defines which contracts, which functions, and which parameter limits the agent is allowed to use — before it is signed and broadcast.The agent operates autonomously within those bounds. No manual approval is needed per transaction unless a policy threshold is exceeded.
