DeFi Explained

⏱ 3.5 hours 📚 4 lessons ✓ Free forever

Understand decentralized finance from the ground up. Lending, yield farming, liquidity pools — and the risks you need to know.

Course Curriculum

Learn what decentralized finance is, how it differs from traditional banking, and why it matters for the future of money.

Learn how to earn interest by lending crypto and how over-collateralized borrowing works in protocols like Aave and Compound.

Understand yield farming, liquidity mining, and how to earn high returns in DeFi — along with the real risks involved.

DeFi has lost billions to hacks and scams. Learn the major risk categories and specific steps to protect your funds.

✓ DeFi refers to financial services built on public blockchains, primarily Ethereum.
✓ DeFi is permissionless — anyone with a wallet can access it, no bank account required.
✓ Smart contracts automatically execute financial agreements without intermediaries.
✓ DeFi's Total Value Locked (TVL) has exceeded $100 billion, indicating massive adoption.
✓ DeFi carries unique risks including smart contract bugs, oracle failures, and liquidation.
✓ DeFi lending lets you earn interest on crypto deposits, often at higher rates than traditional banks.
✓ Borrowing in DeFi requires over-collateralization — you must deposit more than you borrow.
✓ The Loan-to-Value (LTV) ratio determines how much you can borrow against your collateral.