Updated: Jan 1
Welcome to the first in this 8-part Getting started in DeFi series. It's part of a long line of educational pieces we'll have on our blog and we'll also cover other web3 / blockchain-related concepts.
The full series is as follows:
Introduction to DeFi: This lesson covers what DeFi is, why it's important, and how it's different from traditional finance.
Understanding DeFi risks: This covers the risks associated with DeFi, such as smart contract security, liquidity, and volatility.
Choosing a DeFi platform: This covers the different DeFi platforms available, and how to compare and choose the right one for your needs.
Wallets, Buying and More: This lesson covers the basic steps for getting started with DeFi, including setting up a wallet, buying cryptocurrency, and interacting with DeFi protocols.
DeFi projects and protocols: This lesson introduces some of the most popular DeFi projects and protocols, such as MakerDAO, Compound, and Uniswap, and explains how they work.
Advanced DeFi concepts: This lesson covers more advanced DeFi concepts, such as yield farming, liquidity mining, and composability.
DeFi best practices: This lesson covers best practices for using DeFi, including how to manage risk, protect your assets, and stay up to date with the latest developments in the DeFi space.
Conclusion: This lesson summarises the key takeaways from the course and provides resources for further learning and exploration.
Introduction to DeFi
DeFi, or decentralized finance, is a rapidly growing sector of the cryptocurrency industry that seeks to provide financial services and products without the need for a central authority or intermediary. Unlike traditional finance, which is controlled by banks and other financial institutions, DeFi is built on blockchain technology and operates in a decentralized manner.
DeFi is important because it has the potential to democratize finance by making financial services and products accessible to everyone, regardless of their location, income, or credit score. This is because DeFi relies on blockchain technology, which allows for peer-to-peer transactions and eliminates the need for intermediaries. This can reduce the cost of financial services, increase access to capital, and provide greater financial inclusion.
DeFi is also important because it has the potential to disrupt traditional financial institutions and business models. By providing an alternative to traditional financial services, DeFi can challenge the dominance of banks and other financial institutions and foster competition and innovation. This can lead to more efficient and effective financial services, as well as new products and services that were not previously possible.
DeFi is different from traditional finance in several key ways. First, it is decentralized, meaning that it does not rely on a central authority or intermediary to function. Instead, it uses a network of nodes, or computers, to maintain a shared, distributed ledger of transactions. This allows for greater transparency, security, and resilience.
Second, DeFi is built on blockchain technology, which allows for the use of digital assets, such as cryptocurrency, for value transfer and storage. This allows for fast, secure, and transparent value transfer without the need for intermediaries.
Third, DeFi uses smart contracts to automate certain processes, such as contract execution and asset management. This can reduce the need for human intervention and improve the efficiency and speed of transactions.
In conclusion, DeFi is a rapidly growing sector of the cryptocurrency industry that seeks to provide financial services and products in a decentralized manner. It is important because it has the potential to democratize finance, disrupt traditional financial institutions, and foster innovation and competition. It is different from traditional finance in that it is decentralized, uses blockchain technology, and relies on smart contracts.
The Defiant's Definitive Guide to DeFi - If you already have seen the videos, you'll know all about The Defiant and their great content. In this article they step through DeFi going from definitions, buying crypto, DeFi terms and concepts and more.
Finematics - Guide to Decentralised Finance - In this guide from the master of DeFi, Finematics breaks down things into 3 levels for those who are Novices, Apprentices and Masters. The great thing is that each guide is available as an article or video
Finematics - DeFi playlist - Finematics DeFi series going through the various elements of DeFi starting with the smart contracts that underpin the protocols being built on blockchain to yield farmin, liquidity pools and more. We have reviewed and summarised these videos as part of our educational series as well. You can also read the article above from Finematics where each topic in his DeFi guide has a video link as well.
Whiteboard Crypto - DeFi playlist - Is one of the best providers of DeFi education we've seen and we continue to use for our own learning too. In this playlist, they go through various terms used in the DeFi space and break them down with simple analogies and use cases. From Liquidity Mining to Rug Pulls, all is made easy to learn thanks to this creator.
This list of podcasts is not-exhaustive as there are so many great ones to listen to out there. The topics covered in these can seem to be diving into the deep end but they are useful in highlighting the latest thinking in this space. Combining the informtion you learn above with these podcasts can go a long way to amplifying your learning.
The Defiant - DeFi podcast - From the studios of Camila Russo (aka The Defiant) that we mentioned above comes their podcast full of interviews with experts in the DeFi industry. Whether its learning about play to earn gaming, NFTs, the latest in Ethereum improvements and more, this is certainly one to keep an ear out for.
Blockcrunch: Global Crypto Investors - Host Jackson Choi has been running this podcast since 2018 and it covers a whole lot of interesting areas whether you're an investor or someone just interested in what is happening with all the technology updates going on in DeFi.
The DeFi Download - Discussion of all things DeFi with Piers Ridyard from how things work, and interviews with experts in the industry. Worth a look especially as this runs weekly so there is a tonne of content.
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Aus DeFi Association - https://twitter.com/ausdefi
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Mercari Rates - https://twitter.com/MercariRates
Block Earner - https://twitter.com/blockearner
Mark Monfort - https://twitter.com/CaptDeFi
Arturo Rodriguez - https://twitter.com/NumbersDeFi
Nick Bishop - https://twitter.com/N1ckB1shop
Liya Dashkina - https://twitter.com/liyadashkina
Kat Dunn - https://twitter.com/Kat_Dunn_01
Matt Hooper - https://twitter.com/matthooper_nft
Jason Findlay - https://twitter.com/JasonFindlay78
Simon Amery - https://twitter.com/IM_SimonAmery
Wil Gikandi - https://twitter.com/willgikandi
Adelaide Cochrane - https://twitter.com/Adelaideion
James Spencer - https://twitter.com/SensandJames
Jake Denny - https://twitter.com/jakedenny