Decentralized Finance (DeFi) Deep Dive

Go to Course: https://www.coursera.org/learn/decentralized-finance-deep-dive-duke

Introduction

### Course Review: Decentralized Finance (DeFi) Deep Dive on Coursera #### Overview The world of finance is evolving, and decentralized finance (DeFi) is at the forefront of this revolution. Coursera's course, "Decentralized Finance (DeFi) Deep Dive," is the third installment in a comprehensive series titled "DeFi and the Future of Finance." Before diving into this course, it's essential to complete the foundational courses: "I. DeFi Infrastructure" and "II. DeFi Primitives." This prerequisite ensures that learners have the necessary background to fully grasp the complex topics that will be covered in the Deep Dive course. #### Course Structure The "DeFi Deep Dive" course encompasses a robust syllabus designed to provide a thorough understanding of some of the most critical protocols and mechanisms in the DeFi landscape. Here's a detailed breakdown of what to expect: 1. **Credit and Lending** - The course kicks off with an exploration of MakerDAO, particularly its stablecoin DAI. Students will gain insights into how DAI operates and the significance of collateralized debt obligations (CDOs). - This module delves into leading lending protocols like Compound and Aave, allowing participants to understand the intricacies of lending and borrowing assets in a decentralized context. 2. **Decentralized Exchange** - The second module provides a deep dive into decentralized exchanges, focusing on Uniswap v2 and v3. - Here, learners will appreciate the mechanics behind Automated Market Makers (AMMs) and evaluate alternatives like Balancer. A discussion on rehypothecation and Total Locked Value (TLV) offers additional layers of insight into the liquidity dynamics within DeFi. 3. **Derivatives** - The course then transitions into the realm of financial derivatives, presenting leading protocols such as the Yield Protocol for fixed-rate lending and borrowing. - Notable protocols like dYdX and Synthetix are also explored, equipping students with a solid understanding of how derivatives function within DeFi markets. 4. **Tokenization** - The final module focuses on the process of tokenization, highlighting tools like Set Protocol, which allows for the creation of combined portfolios similar to traditional exchange-traded funds (ETFs). - The course wraps up with a relevant discussion on wrapped Bitcoin and wrapped Ethereum, emphasizing their applications and significance in the DeFi ecosystem. #### Course Evaluation Completing the "DeFi Deep Dive" course provides invaluable knowledge for anyone looking to understand the rapidly evolving landscape of decentralized finance. The instructional content is well-structured, and the materials are presented in an engaging manner that caters to both newcomers and those with some background in finance and blockchain technology. The course's hands-on approach fosters critical thinking, encouraging learners to apply concepts in real-world scenarios. The discussions on leading protocols offer practical insights that can be invaluable for students looking to work in the FinTech or blockchain space. Furthermore, the emphasis on current trends and innovations helps keep the content relevant, ensuring students are equipped to navigate the future of finance. #### Recommendation I highly recommend "Decentralized Finance (DeFi) Deep Dive" for individuals interested in advancing their knowledge in cryptocurrency and decentralized financial systems. Whether you're a finance professional looking to pivot into the blockchain sector or a curious learner eager to understand the mechanics of DeFi, this course is an excellent choice. Completing the entire series—especially the foundational courses—is advised to maximize your learning experience. By the end of this course, you will not only have a profound understanding of what's driving DeFi innovation but also the skills necessary to engage with these technologies effectively. Dive in and explore the future of finance today!

Syllabus

Credit and Lending

We begin module one with the mechanics of MakerDAO stablecoin called DAI and introduce the idea of collateralized debt obligations. The module also includes a detailed examination of both Compound and Aave.

The second module explores the mechanics of Uniswap v2 and v3. A generalization of the two asset Automated Market Maker introduced by Balancer is also studied. The module ends with a discussion of rehypothecation as well as Total Locked Value.

The third model features leading derivatives protocols. The mechanics of fixed rate lending and borrowing is presented with the Yield Protocol. The mechanics of dYdX and Synthetix are also explored.

The final module focuses on tokenization and features the Set Protocol. Set provides a way to combine portfolios much like an ETF holds many traditional stocks. The Sets can be active or passive. The module ends with a discussion of the use in DeFi of both wrapped bitcoin and wrapped ethereum.