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Education only · not financial, tax or legal adviceCanadian facts checked 2026-10-31 · a MITEY site
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Infographic

The DeFi stack, and who protects you at each layer

Each layer depends on the ones below it. Protections Canadians may expect from a bank do not carry over into DeFi.

Mitey the yeti, blue-eyed with a blond tuft, holding out an open paw, with a chain block
Mitey says: Every number in this picture is worked out in the notes below it.
The DeFi stackYou + your walletyou sign; you hold keys (or a platform does)Apps & aggregatorswebsites that route transactionsProtocolslending · trading · staking · bridgesAssetscoins · stablecoins · tokensSettlement layerthe blockchain orders and recordsProtection?No CDICNo ombudsmanNo chargebacksNo password resetRegistered platform:some safeguardsProtocol: noneEditorial diagram · DecentralizedFinance.ca · facts checked 2026-10-31
The DeFi stack, and who protects you at each layer. Each layer depends on the ones below it. Protections Canadians may expect from a bank do not carry over into DeFi.

Reading the infographic

  • Settlement: a public blockchain records and orders transactions.
  • Assets: native coins, stablecoins and tokens live on that chain.
  • Protocols: smart contracts for lending, trading, staking and bridging.
  • Apps and aggregators: websites and tools that route your transactions to protocols.
  • You and your wallet: you sign every transaction and hold the keys (or a platform does).
  • No layer offers CDIC deposit insurance or an ombudsman; a registered Canadian platform adds some protections, a protocol adds none.

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You may share this infographic with a link back to this page. Numbers are hypothetical teaching examples unless a date and source are shown.

Education only. Nothing on this page is financial, investment, tax or legal advice, or a recommendation to buy, sell, stake, lend or borrow any crypto-asset. Crypto-assets can lose some or all of their value and are not covered by CDIC. Canadian rules change: check the dated sources above and talk to a qualified professional about your situation. Full disclaimer.