What Are the Risks Associated with Non-Standardized Tokens in a DeFi Environment?

Non-standardized tokens pose significant risks because they lack the predictable functions that DeFi protocols rely on. They may not be compatible with decentralized exchanges (DEXs), lending platforms, or derivative smart contracts.

This lack of interoperability makes them illiquid and difficult to integrate. Furthermore, non-standard tokens can introduce security vulnerabilities or unexpected behavior when interacting with standardized protocols, leading to potential exploits or loss of funds.