A developer wants to create a DeFi application that allows users to swap tokens directly from their wallets. Which component is essential for this functionality?

A smart contract that acts as an automated market maker.

A DeFi startup wants to offer a lending product but is concerned about the risk of a price oracle manipulation attack. Which approach is most effective in mitigating this risk?

Use a single centralized oracle for price data.

Use the protocol's own token price as the oracle.

Allow users to submit price data.

Use a decentralized oracle network that aggregates price data from multiple sources.

A DeFi protocol has a bug in its smart contract that allows an attacker to drain funds from liquidity pools. The team has identified the bug but cannot upgrade the contract because it is immutable. The protocol has a large user base and significant TVL. What is the best course of action?

Freeze all funds in the protocol permanently

Deploy a new version of the protocol and migrate users and liquidity to it

Use a governance vote to change the contract's code

Ask users to stop using the protocol and hope the bug is not exploited

A DeFi startup wants to offer users the ability to trade tokens without requiring them to create an account or provide personal information. The startup also wants to ensure that users retain control of their funds at all times. Which architecture best supports this requirement?

A centralized exchange with a built-in wallet

A private blockchain with permissioned access

A custodial wallet service that manages private keys on behalf of users

A non-custodial dApp that interacts directly with smart contracts on a public blockchain

In DeFi, what is yield farming?

The process of mining new blocks on a proof-of-work blockchain.

The process of storing tokens in a hardware wallet for long-term appreciation.

The process of buying tokens at an initial coin offering (ICO).

The process of earning additional tokens by providing liquidity to a protocol.

EC-CouncilBlockchain Business Leader Certification

Domain 8Objective 1

Decentralized Finance (DeFi) Applications and Ecosystem BBLC Practice Questions (Page 8)

Part of the DeFi, NFTs, and Web3 Business Models domain, which makes up ~6% of our current practice bank.

45questions here

9free pages

4concepts

Questions 36–40

36application · medium
A developer wants to create a DeFi application that allows users to swap tokens directly from their wallets. Which component is essential for this functionality?
Select an answer first
37expert · hard
A DeFi startup wants to offer a lending product but is concerned about the risk of a price oracle manipulation attack. Which approach is most effective in mitigating this risk?
Select an answer first
38expert · hard
A DeFi protocol has a bug in its smart contract that allows an attacker to drain funds from liquidity pools. The team has identified the bug but cannot upgrade the contract because it is immutable. The protocol has a large user base and significant TVL. What is the best course of action?
Select an answer first
39application · medium
A DeFi startup wants to offer users the ability to trade tokens without requiring them to create an account or provide personal information. The startup also wants to ensure that users retain control of their funds at all times. Which architecture best supports this requirement?
Select an answer first
40foundation · easy
In DeFi, what is yield farming?
Select an answer first

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