Back to: Crypto Fundamentals from Zero
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Finance without the front desk
Decentralized Finance (“DeFi”) rebuilds banking products — trading, lending, borrowing, savings — as smart contracts anyone can compose.
- DEX (decentralized exchange) — swaps tokens without a company; the pool of funds is the market.
- Lending protocols — lend your crypto and earn interest, or deposit collateral to borrow.
- Stablecoins — tokens pegged to a dollar, trying to keep price stable.
- Yield farming — automated strategies that seek the highest return across apps.
The honest truth about Yields
High yields mean someone is paying for them: the borrower, inflation of the token, or impermanent loss. When a “risk-free” 20% APY appears, the risk is being paid to you silently.
This is the skill: DeFi rewards people who understand where value actually comes from. Everything else in this academy is a tool to sharpen that understanding.