Integrating DeFi with FinTech Platforms BFC Practice Questions (Page 5)

Questions 21–25

1. 21foundation · easy

   In a DeFi-FinTech integration, what is a key data privacy concern?

   • ASmart contracts automatically share user data with third parties
   • BTransactions on public blockchains are visible to all participants, potentially exposing user financial activity
   • CUser passwords are stored in plain text on the blockchain
   • DThe FinTech platform's internal emails are publicly accessible
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2. 22application · medium

   A fintech platform wants to let users deposit fiat and have it automatically swapped to a stablecoin and supplied to a DeFi lending pool. The platform's backend runs on traditional servers and cannot hold private keys. Which integration approach best meets these constraints while minimizing new attack surface?

   • AUse a blockchain bridge to move fiat from the bank directly into the DeFi lending pool.
   • BRun a non-custodial node and have users sign every transaction manually through a browser wallet.
   • CDeploy a smart contract that accepts fiat directly and manages the swap and deposit without any external API.
   • DUse a custodial DeFi gateway API that handles the swap, deposit, and key management, and call it from the backend via REST.
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4. 23application · medium

   A fintech platform based in Singapore wants to integrate a DeFi protocol that allows users to lend and borrow digital assets. The platform's legal team is concerned about whether the DeFi protocol itself needs a license. Which regulatory approach is most appropriate?

   • AAsk the DeFi protocol to obtain a license in Singapore before integrating.
   • BAssume the DeFi protocol is decentralized and therefore not subject to any licensing requirements.
   • COnly integrate with DeFi protocols that are based in jurisdictions with no licensing requirements.
   • DObtain a license for the fintech platform itself and ensure that the platform's activities, such as custody and facilitation, comply with local regulations.
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5. 24expert · hard

   A fintech platform wants to offer a DeFi yield product that automatically rebalances between a stablecoin lending pool and a volatile asset liquidity pool to maximize returns. The platform's risk team is concerned about impermanent loss and smart contract risk. Which strategy best balances yield optimization with risk management?

   • AKeep all funds in the stablecoin pool to eliminate all risk.
   • BLet users choose their own allocation without any platform-level risk controls.
   • CAllocate all funds to the volatile asset pool because it has historically higher returns.
   • DUse a dynamic allocation strategy that shifts funds based on market conditions, with a cap on the percentage allocated to the volatile pool.
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6. 25foundation · easy

   Which best practice is commonly highlighted in successful DeFi-FinTech integration case studies?

   • AAvoiding any interaction with regulators until the product is fully launched
   • BUsing a single smart contract for all functions to reduce complexity
   • CStarting with a small pilot program to test the integration before full-scale deployment
   • DImmediately launching all features to maximize user adoption
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