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How Does Censorship Affect Decentralized Finance (DeFi)?

It undermines the permissionless nature of DeFi, preventing transactions and leading to a loss of trust and capital.
Greeks.Live03.11.25

How Does Censorship Affect Decentralized Finance (DeFi)?

Censorship can severely damage DeFi by preventing users from accessing their funds, executing trades, or interacting with smart contracts. If a powerful entity can block transactions to specific DeFi protocols, it undermines the core promise of DeFi: permissionless access to financial services.

This risk leads to a loss of trust and capital flight.

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