DeFi Oversight

Definition ∞ DeFi oversight refers to the frameworks and mechanisms employed to monitor and govern decentralized finance protocols. This involves ensuring the security, stability, and compliance of financial applications operating on blockchain networks. The aim is to mitigate risks associated with smart contract failures, exploits, and regulatory non-compliance.
Context ∞ The current discourse on DeFi oversight centers on the challenges of applying traditional financial regulations to a decentralized and borderless ecosystem. News articles frequently report on proposals for smart contract auditing standards, risk assessment frameworks, and the potential roles of decentralized autonomous organizations (DAOs) in governance. Future developments will likely involve increased scrutiny from regulators and the continued evolution of self-regulatory measures within the DeFi community.