The People Have Asked for a DeFi Primer
And The People will get one.
Hi there,
I have to honest here and say that I had a completely different plan for the next couple newsletters I planned to send to you. I had intended to clear out the backlog of emails and announce a winner, and so forth. But the response I got as to whether you wanted a primer on Decentralised Finance was enough to make me change plans.
As requested, you will find below some articles and a bunch of videos you can watch to bring you up to speed on the subject of Decentralised Finance. It will get you out of the gate in terms of understanding what the terms are, and maybe even get you curious enough to jump down the rabbit hole. Depending on what the response to this primer is, I might consider preparing another one for getting you started (Keyword:MIGHT; it was really time consuming preparing this).
If you can think of at least one person that you know would need a primer on DeFi, like this, then you should consider sharing this post with them before you even go on.
Chairman☝🏾
DeFi Primer by Chairman ☝🏾
Preamble
Decentralized Finance has become a key piece of the Crypto space outside of speculation (DOGE TO THE MOON) and the ongoing construction of the settlement layer of Web3.0.
However, as it stands it still remains a relatively new area — both for opportunities, and for grasp and mainstream understanding/acceptance.
But what exactly is Decentralized Finance? In one sentence it simply refers to several disparate individuals taking on the functions currently being undertaken by Centralised Financial Services Companies — from Commercial Banks, to Investment Banks and the like. It involves individuals becoming banks on to themselves, as opposed to volunteering their funds to a centralised entity to hold in custody for them.
Thus when your funds are deployed it is done in a way that eliminates counterparty risk (a bank folding up or someone running away with your money) and without a need for trust in centralised entities. The trust in this instance is placed in Code, and democratised communities united around a Defi protocol.
What do Banks do?
Collect deposits
Lend money
Charge interest on this.
Change money
Charge fees on this
DeFi — Decentralized Finance just means that regular people, like you and I become the bank. So what do we do?
Collect deposits — From Yourself
Lend money — to protocols like Aave, Compound
YOU charge an interest on this.
Change money — Offer Liquidity on protocols like Uniswap and Sushi
YOU charge fees on this
The Curriculum
Contents — What is Inside
What is Defi
Introductory Read
History of DeFi
How DeFi works
Decentralized Exchanges (DEX) and Liquidity Provision
Uniswap
Yield Farming
Yearn Vaults
Liquidity Pools
AMMs
Lending
Intro
Compound
Aave
Stablecoins
Maker —
The MKR Meltdown
Risks of DeFi
Impermanent Loss -
Bank Run
More info — Advanced
DAI in Argentina
Sushiswap x Vampire Attack
Optimizing your DeFi
Uniswap V3 — Intro
Concentrated Liquidity
Thorchain
Playlists
What is Defi
Read: https://defipulse.com/blog/2019/09/03/what-is-defi/
History:
How it works
Dex and Liquidity Provision
Uniswap
Yield Farming
Yearn Vaults
Liquidity Pools
AMMs
Lending
Intro
Compound
Aave
Stablecoins
Maker —
The MKR Meltdown
The Risks of DeFi
Impermanent Loss -
Bank Run
More info — Advanced
The DAI In Argentina
Sushiswap x Vampire Attack —
Optimizing your DeFi
Uniswap V3 — Intro
Concentrated Liquidity
Thorchain
Do you want more?
Playlists
If you enjoyed this post, then you should consider sharing it, as much, and as freely as you can.
