How does defence work?

I just want to know the formula for defence. I thought it was a flat reduction at first, but it seems to become less effective at some point.

Also, enemies seem to scale much faster than I do. When my monsters reach level 12 or so, I hit for like 10-15 damage while enemies hit me for like 60-80. I can’t really craft at this point. Should I go back to lower dungeon levels?

I don’t know about defense per say, but I can tell you that realm level can add a lot of difficulty due to scaling levels. It is especially hard if you aren’t using custom artifacts. My advice would be to stick to lower realm levels until you can craft something decent for damage dealing.

Defense is subtracted from Attack directly. You always take some damage anyways because Speed deals very low amounts of damage as well and is unpreventable unless you use Sapphire Paragon or its ability.

Enemy levels scales exponentially in deeper floors, where “deeper” means anything past five. As you start hitting triple digits the difference between Realm levels becomes even more dramatic.