Skip main navigation

New offer! Get 30% off your first 2 months of Unlimited Monthly. Start your subscription for just £29.99 £19.99. New subscribers only. T&Cs apply

Find out more

Week 3 Introduction

Summary of main points from last week/Introduction to topics covered this week
(lighthearted music) <v ->We’re now halfway through the course.</v> In week three, we’re gonna finally put our tokens to work. We’re going farming, yield farming. We’re gonna explore learns and derivatives and the other elements of finance in the DeFi universe. Chris, what have we got coming up? <v ->This is a critical week, Jason,</v> because we’re gonna learn some of the most important concepts in decentralized finance. So yield farming, we’re gonna understand the concept of liquidity pools. We’re gonna understand the concept and risks of impermanent loss. We’re gonna understand how defy derivatives interact with the rest of the cryptocurrency ecosystem. It’s an exciting week, let’s get going. (gentle music)

Welcome to Week 3! Now that we have performed some hands-on DeFi tasks in Week 2, we will turn our attention to the ways we can put our tokens to work. Watch Professor Jason Potts and Associate Professor Chris Berg explain how we are going to do that.

Over the course of this week, we will:

  • learn more about borrowing and lending in DeFi
  • explore yield farming and liquidity pools
  • introduce you to the world of DeFi derivatives.

Upon completion of week one, you should better be able to:

  • summarise DeFi applications
  • explore the process of yield farming
  • define impermanent loss
  • differentiate DeFi from traditional, centralised finance (CeFi)
  • describe methods of speculating in DeFi.

Share your thoughts

Before further exploring DeFi applications this week, share your thoughts with your fellow DeFi explorers. What do you think the advantages of borrowing and lending in DeFi are? What are the disadvantages?

This article is from the free online

Decentralised Finance: Blockchain, Ethereum, and The Future of Banking

Created by
FutureLearn - Learning For Life

Reach your personal and professional goals

Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.

Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.

Start Learning now