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Why Are Smart Contracts Important in DeFi Development? Smart contracts handle much of the core logic in DeFi applications. They can manage transactions, lending rules, liquidity pools, token swaps, and other operations directly on a blockchain. From a development perspective, contract design needs careful attention because the code determines how users interact with the protocol. Testing, access controls, transaction handling, and security checks are important before deploying contracts on a live network. What smart contract area do you think needs the most attention when building a DeFi application?