Week 3 summary

Congratulations on completing week 3 of Decentralised Finance: Blockchain, Ethereum, and The Future of Banking! You have now explored borrowing and lending applications in DeFi and experienced some of the ways that speculation happens in the DeFi world.

By completing this week, you should now be better 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.

In week 4, we will examine the risks that exist in the DeFi world in order to prepare you to safely navigate DeFi after you complete this course. We will also look at what the future of DeFi holds.

Before you move on to week 4, let’s check your understanding with a brief quiz on the content we covered this week. Use this quiz to gauge your understanding of the content and identify areas where you may benefit from further review. You can take the quiz as many times as you wish.