Understanding the language of DeFi is essential to interacting in the DeFi community. Here is a brief glossary of terms that you will encounter throughout this course and your interactions …
Cryptocurrencies such as Bitcoin (BTC) were originally intended to serve as money. Historically, different objects have served as money: fiat money issued by governments, gold, cigarettes during wars or in …
As finance has evolved over time there has been a trend towards greater levels of centralisation. Trusted intermediaries are at the core of the financial system. Banks, Exchanges, and government …
Humans have been trading with each for thousands of years. Many human institutions, such as language for example, evolved so that we could better trade with each other. Money is …
The idea of smart contracts dates to the 1990s. Writing in 1994, the computer scientist Nick Szabo defined a smart contract as “a computerised transaction protocol that executes the terms …
Public and private keys are the key concepts of asymmetric cryptography – a method used to protect identities and data from unauthorized access. Using a cryptographic algorithm, the keys are …
The Governance of DeFi DeFi projects and protocols need to be governed. Governance are the rules by which group decisions are made, executed and enforced. These governance rules are necessary …
The Oxford English Dictionary defines value as being, ‘worth or desirability or utility’. Price is defined as being ‘the amount of money expected, required or given in payment for something’. …
A stablecoin is a cryptocurrency that attempts to maintain a fixed or ‘pegged’ price in terms of another asset. For example, the cryptocurrency may peg its value to USD, say …
What is a cybersecurity risk? Cybersecurity risk is the probability of exposure or loss resulting from a cyber-attack or data breach (e.g. direct loss of assets and sensitive information, or …
The DeFi industry has only emerged in the past few years. Yet in that short time there has been rapid innovation in decentralised business models and technologies. There is little …
Market risk is defined as the risk of losses arising from movements in market prices. It is essentially a very simple concept, depending on which side of a transaction we …
Holders of cryptocurrency have a choice between leaving their funds idle in a wallet or locking the funds in a smart contract in order to contribute to liquidity. The liquidity …
Before looking at ways you can put capital to work by borrowing and lending in DeFi, it’s a good idea to review how it works in conventional financial markets, or …
In this article we explore swapping between cryptocurrencies and stablecoins. We first introduce decentralised exchanges, where you can swap between cryptocurrencies using smart contracts. Then we introduce stablecoins, which are …