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DeFi glossary

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 …

Stablecoins

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 …

DeFi versus CeFi

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 …

What are smart contracts?

The idea of smart contracts dates to the 1990s. Writing in 1994, the computer scientist Nick Szabo defined a smart contract as “a computerized transaction protocol that executes the terms …

Public and private keys

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 …

DAOs

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 for a range of …

Pricing and valuation in DeFi

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’. …

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 reputational harm). DeFi projects …

Technology risk

The DeFi industry has emerged only in the past few years. In that short time there has been rapid innovation in decentralised business models and technologies. Throughout this course we …

Introduction to yield farming

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 …

Market risk

Navigating DeFi safely requires an understanding of the risks that you will encounter. Over the next several steps we will examine four major types of risk present in DeFi: market …

Putting capital to work

Before we look closer at ways that we can put capital to work by borrowing and lending in DeFi, let’s review how it works in conventional financial markets, or ‘CeFi’. …

Why swap to a stablecoin?

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 …
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