My Skill Lab
FinanceIntermediate

DeFi and Web3 Finance

Lending, DEXs, yield and the risks under the hood.

Taught by Aarav Shrestha · Trader & Markets Educator

What you'll learn

  • Explain how DeFi protocols compose into a stack of settlement, assets, protocols and applications
  • Calculate swap output, price impact and impermanent loss for a constant-product AMM
  • Model a collateralised loan's health factor and the price at which it would be liquidated
  • Compare stablecoin designs and trace where a quoted DeFi yield really comes from
  • Assess a protocol's smart-contract, oracle, governance and bridge risks before depositing
  • Research protocols on-chain with Etherscan, Dune and DefiLlama

About this course

DeFi and Web3 Finance takes you beyond buying coins and into the protocols that let people trade, lend, borrow and earn yield without a bank. Designed as the follow-on to a crypto basics course, it explains how decentralised exchanges and automated market makers such as Uniswap price assets, what impermanent loss really costs a liquidity provider, and how lending protocols such as Aave use collateral, health factors and liquidations. You will look inside the main stablecoin designs, learn where DeFi yield actually comes from, and see how smart-contract, oracle and bridge exploits happen. The final lesson shows you how to research any protocol with on-chain analysis tools such as Etherscan, Dune and DefiLlama. Short Python snippets let you model swaps, liquidity positions and loans yourself. You should already understand wallets, gas and tokens. This course is education, not financial advice.

Course content

7 lessons
  1. 1What DeFi Is and How It Differs From BankingPermissionless finance, composability, the DeFi stack and the trade-offs against traditional finance.Preview
  2. 2Transactions, Gas and Token ApprovalsWhat you sign in DeFi, how fees work, and why token approvals are the most abused permission on-chain.
  3. 3Automated Market Makers and Decentralised ExchangesConstant-product pricing, slippage and price impact, MEV, concentrated liquidity and aggregators.
  4. 4Providing Liquidity and Impermanent LossHow liquidity providers earn fees, why price moves cost them, and how to judge whether a pool pays.
  5. 5Lending, Borrowing and LiquidationsOvercollateralised loans, utilisation-based interest rates, health factors and how liquidations work.
  6. 6Stablecoin Mechanics and Where Yield Comes FromHow fiat-backed, CDP and synthetic stablecoins hold their peg, and how to trace the source of any yield.
  7. 7Smart-Contract Risk and On-Chain AnalysisHow DeFi exploits happen, a practical due-diligence checklist, and researching protocols with on-chain data.