DeFi
8 guides covering defi — ordered from beginner to advanced.
DeFi guides
What Is DeFi?
An introduction to decentralised finance, its building blocks, and the risks behind its open access.
7 min read · 9 related concepts
How Decentralized Exchanges Work
A clear explanation of how decentralized exchanges let people trade directly from their own wallets, using automated market makers.
6 min read · 6 related concepts
Understanding DeFi Lending and Borrowing
How DeFi lending protocols let people lend and borrow crypto through smart contracts, and why over-collateralization matters.
6 min read · 7 related concepts
Understanding Liquidity Pools and AMMs
How automated market makers use liquidity pools to enable trading without a traditional order book.
6 min read · 5 related concepts
What Is Yield Farming?
How yield farming works, and the real risks behind advertised returns.
6 min read · 3 related concepts
Understanding Impermanent Loss
Why providing liquidity to a pool can leave you worse off than simply holding the same assets.
6 min read · 1 related concept
How Flash Loans Work
How a loan can be borrowed and repaid within a single transaction, and what it's actually used for.
6 min read · 1 related concept
Understanding Real Yield vs. Emissions-Funded Yield
The difference between yield paid from genuine revenue and yield funded by new token issuance.
5 min read · 1 related concept
Key terms in this category
Yield Farming
Read the Yield Farming glossary definition
Staking
Read the Staking glossary definition
Unstaking
Read the Unstaking glossary definition
DeFi
Read the DeFi glossary definition
Liquidity
Read the Liquidity glossary definition
Slippage
Read the Slippage glossary definition
Stablecoin
Read the Stablecoin glossary definition
Decentralized Exchange
Read the Decentralized Exchange glossary definition
Automated Market Maker
Read the Automated Market Maker glossary definition
Liquidity Pool
Read the Liquidity Pool glossary definition
Liquidity Provider
Read the Liquidity Provider glossary definition
Impermanent Loss
Read the Impermanent Loss glossary definition
Token Approval
Read the Token Approval glossary definition
Lending Protocol
Read the Lending Protocol glossary definition
Collateral
Read the Collateral glossary definition
Over-Collateralization
Read the Over-Collateralization glossary definition
Liquidation
Read the Liquidation glossary definition
Flash Loan
Read the Flash Loan glossary definition
Liquid Staking
Read the Liquid Staking glossary definition
Impermanent Loss Protection
Read the Impermanent Loss Protection glossary definition
Bonding
Read the Bonding glossary definition
Unbonding
Read the Unbonding glossary definition
Real Yield
Read the Real Yield glossary definition