DeFi Interfaces
Navigating decentralized finance platforms safely and effectively
What Are DeFi Interfaces?
DeFi protocols are smart contracts on the blockchain. Interfaces (also called front-ends) are the websites that make these contracts user-friendly. When you use Uniswap, you're interacting with their front-end, which talks to their smart contracts.
Understanding this distinction matters: the protocol may be decentralized, but the interface you use often isn't.
Think of it like an ATM
Common DeFi Categories
Decentralized exchanges (DEXs): Uniswap, SushiSwap, Curve. Allow you to swap tokens without a central intermediary.
Lending/borrowing: Aave, Compound. Deposit crypto to earn interest or borrow against collateral.
Aggregators: 1inch, Paraswap. Search multiple DEXs to find the best price for your trade.
Yield farming: Various platforms for providing liquidity and earning rewards. Higher complexity and risk.
Connecting Your Wallet
DeFi interfaces require connecting a self-custody wallet like MetaMask. The connection grants the site permission to see your address and request transaction signatures.
Connection doesn't mean control: A connected site can't take your funds without you signing a transaction. But be careful what you sign.
Disconnect when done: Most wallets let you manage connected sites. Periodically review and revoke connections you don't need.
Understanding Approvals
Before using most DeFi protocols, you need to "approve" them to spend your tokens. This is a separate transaction that grants permission.
Unlimited approvals: Many interfaces request unlimited approval for convenience. This means the contract can spend any amount of that token from your wallet forever.
Limited approvals: Safer option—approve only what you need for this transaction. Requires re-approval for future transactions.
Revoke approvals: Tools like Revoke.cash let you see and revoke outstanding approvals. Good hygiene to check periodically.
Why Safe DeFi Navigation Matters
- Malicious approvals can drain your wallet entirely
- Fake interfaces can steal funds through phishing
- Understanding what you're signing prevents costly mistakes
- DeFi offers opportunities but requires careful interaction
DeFi Interface Risks
- •Phishing sites mimicking legitimate interfaces
- •Unlimited token approvals left active indefinitely
- •Malicious transactions disguised as harmless operations
- •Front-end compromises—even legitimate sites can be hacked
- •Signing transactions without understanding what they do
Safety Practices
Verify URLs carefully: Bookmark official sites. Check URLs character by character. Don't click links in messages.
Start small: Test with small amounts before committing significant funds to any new protocol.
Read before signing: Your wallet shows what you're approving. Take time to understand before confirming.
Key Takeaways
- DeFi interfaces are front-ends to blockchain smart contracts
- Connecting your wallet allows sites to request signatures
- Token approvals grant spending permission—limit them when possible
- Verify URLs meticulously—phishing is a major threat
- Review and revoke old approvals periodically