Integrating DeFi with FinTech Platforms BFC Practice Questions (Page 10)

Questions 46–50

1. 46application · medium

   A mobile banking app wants to offer a 'DeFi Savings' feature where users can opt in to have a portion of their idle cash deposited into a stablecoin yield pool. The product team is concerned about regulatory classification and user expectations. Which design decision best aligns with common compliance practices and user transparency?

   • AOffer the feature only to users who have completed a short quiz about DeFi risks, and then automatically enroll them to maximize adoption.
   • BLabel the feature as a 'high-yield savings account' and assure users that their principal is protected by the same deposit insurance as their regular bank account.
   • CPresent the feature as a non-guaranteed investment product with clear disclosure that the principal is not insured and that yields are variable and subject to smart contract risk.
   • DKeep the feature hidden behind a settings menu and only show the yield rate after the user has deposited funds, to avoid scaring them away.
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2. 47expert · hard

   A fintech platform wants to integrate a DeFi protocol that offers lending and borrowing. The platform operates in a jurisdiction where the regulatory status of DeFi is unclear. The platform's legal team is concerned about potential enforcement actions. Which approach best manages regulatory risk?

   • AProceed with the integration but limit the product to users who sign an acknowledgment that they understand the regulatory uncertainty.
   • BDelay the integration until the regulator issues clear guidance or the platform obtains a formal legal opinion.
   • CUse a decentralized autonomous organization (DAO) to operate the integration, so the platform is not legally responsible.
   • DIntegrate the protocol but only in a non-custodial manner to avoid any regulatory oversight.
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4. 48application · medium

   A fintech wants to automate interest payments to users who deposit into a DeFi yield pool. The payments should be made every block to be efficient. Which smart contract design consideration is most important?

   • AStore interest payments off-chain and only update the blockchain monthly.
   • BUse a pull-based payment model where users claim their accrued interest, and the contract updates each user's balance on demand.
   • CDeploy a new smart contract for each user to handle their interest individually.
   • DUse a loop in the smart contract to iterate over all users and transfer interest to each one every block.
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5. 49application · medium

   A fintech platform wants to offer DeFi staking to users but is concerned about the risk of losing user funds if the platform's hot wallet is compromised. Which custody model best reduces this risk while still allowing automated staking?

   • AKeep all user funds in a single hot wallet that the staking smart contract can access.
   • BLet users hold their own private keys and manually sign every staking transaction.
   • CUse a multi-signature cold wallet for all staking operations, requiring manual approval for each transaction.
   • DUse a smart contract wallet with daily withdrawal limits and allowlisting of staking contract addresses, while keeping the majority of funds in cold storage.
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6. 50foundation · easy

   How do smart contracts automate financial operations within a FinTech platform?

   • ABy executing predefined actions automatically when conditions are met, without requiring manual intervention
   • BBy providing a graphical interface for users to manually trigger actions
   • CBy requiring a human operator to approve each transaction before execution
   • DBy storing data in a centralized database that is manually updated
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