How to DeFi

by Darren Lau, Sze Jin Teh, Kristian Kho

"This is an excellent resource for anyone who wants a comprehensive introduction to DeFi."- Kain Warwick, Founder of Synthetix"If I didn't know anything about DeFi and needed to learn from scratch, this book is where I'd start."- Felix Feng, CEO of TokenSets"This book details the new economies created by a generation of bankless pioneers. It's the best introduction you could ask for."- Mariano Conti, Head of Smart Contracts at Maker FoundationDecentralized Finance (DeFi) is an ecosystem of decentralized applications that provide financial services built on top of distributed networks with no governing authority. At the time of writing (March 2020), DeFi applications have locked up over $1 billion worth of cryptocurrencies in smart contracts. DeFi is expected to grow further in the coming years and is a key component in fulfilling Ethereum’s lofty vision and ambition. You will learn about the various elements of DeFi such as decentralized stablecoins, decentralized exchanges, decentralized lending, decentralized derivatives, decentralized insurance and more.DeFi has been immensely popular throughout 2019 and 2020 and is showing no signs of slowing down. Use this book to stay ahead of the curve and learn how you can utilize various DeFi applications to better understand the changes that will disrupt the traditional financial sector.In this book, you will What is DeFi and their differences with traditional finance- What is Ethereum and its role in DeFi- Step-by-step guides in using the various DeFi applications- Real-life use cases of DeFi and how you too can earn from opportunities within the spaceWith simple, yet concise explanations and guides, it has never been easier for you to understand and get started with the various DeFi applications.

Genres: Finance, Technology, Nonfiction, Economics, Business, Money

219 pages, Kindle Edition

Published March 22, 2020

Reviews

[Sebastian Gebski · Rating 1 out of 5]

I wish I knew who this book is for ... Certainly NOT for myself. I have nothing against DeFi, but this book is nothing but an "advertisement" of a few, carefully chosen DeFi services. Authors never bother to answer the question "WHY?".

E.g. There are chapters on lending, lottery, or insurance, but does ANY of them describe what are the (practical) differences between decentralized and centralized approach on X? What's the decentralized advantage here? Are there any drawbacks? Does it work the same or different way? What are the mechanisms that contain the overall system? There's NOTHING on that - just "use service XYZ, here's the wizard on how to register"

This book is a mindless cheat sheet for hype-kiddos who'll accept anything that runs on Bitcoin/Ethereum. There's no discussion about the actual elevation of the game for financial instruments on XXI century. This book is a waste of both time and money. Sadly :(

[Arthur · Rating 5 out of 5]

A straightforward introduction to the DeFi ecosystem, with brief explanations of the main services as of 2020 and quick guides on how to begin using them.

[Melissa Charitos · Rating 3 out of 5]

Very easy read, gives a global/basic overview of DeFi with some guides on how to get started. Feels a bit outdated already and only focuses on the Ethereum network. I would like to know if they chose the projects they mentioned themselves or if there are some sponsorships at play. I learned some stuff about insurance and lottery’s but not enough to give this ebook more than 3 stars. Appreciate the linked articles etc.

If you want step-by-step guides on how to use i.a. Uniswap and Compound you’re in the right place. If you’re looking for in-depth understanding of DeFi better look somewhere else. The real life use cases are nice, but it’s unfortunately just one or two chapters.

[Denis Vasilev · Rating 4 out of 5]

Актуальный путеводитель по децентрализованным финансам, на начало 2021 года. Рынок развивается быстро, но как введение, на текущий момент, самое то.

[Shorya Jain · Rating 5 out of 5]

This is a good primer for someone interested in Decentralized Finance (DeFi). The one very important catch is that the book is 3 years old, appx a generation in the DeFi/Web3/Crypto space. However, the fundamentals don't change. I have been part of the crypto community since 10th grade and contemplated accepting a job offer from a crypto hedge fund a few months back, which is when I started reading this book. I found some very fascinating projects in this book. Especially loved Sablier.

[Mikko Ikola · Rating 5 out of 5]

Great overview on DeFi


Great book to build a good birds eye view on Decentralized Finance. Good balance of theory and practicality to understand how things work and actually register the necessary accounts to make DeFi work for you.

The book is a bit outdated and some of the screenshots of apps look quite different today. However, this doesn’t matter, and on the positive note, it gives you perspective how quickly things are developing in DeFi.

[Ed Yao · Rating 5 out of 5]

A very practical step-by-step book showing examples of decentralized finance in the crypto space. Just enough detail to get the curious started.

[Pavel Annenkov · Rating 4 out of 5]

О ЧЕМ КНИГА:
Децентрализованные финансы (DeFi) это уже не будущее, а настоящее. Эта книга - гид по различным приложениям, сделанным на основе принципов DeFi. Авторы детально рассказывают и объясняют принципы того, как работают приложения Dapps в основных финансовых сферах и услугах.

ГЛАВНАЯ МЫСЛЬ КНИГИ:
Многие финансовые сервисы, такие как банковское обслуживание, кредитование, торговля ценными бумагами, отстают от требований текущей реальности, когда у каждого человека уже есть смартфон с выходом в интернет и возможность завести кошелёк для хранения криптовалют. Новые приложения на принципах распределённых финансов могут заменить собой практически любые финансовые услуги и сделать это быстро и недорого.

ЗАЧЕМ ЧИТАТЬ ЭТУ КНИГУ?
Чтобы разобраться в DeFi

МЫСЛИ И ВЫВОДЫ ИЗ КНИГИ:
- Интересно, как DeFi приложения могут решать финансовые проблемы людей в третьих странах. Дать им доступ к банковским услугам или уберечь от девальвации местной валюты.

- Примерно 1,7 млрд населения в мире ещё не пользуется банковскими сервисами. Но у 2/3 из них есть смартфон, что даёт им возможность подключиться к приложениям и услугам на основе распределённых финансов.

- Ситуация с DeFi сейчас похожа на ситуацию с интернетом в 90-х.

ЧТО Я БУДУ ПРИМЕНЯТЬ:
Зарегистрируюсь в нескольких приложениях из этой книги и протестирую, как они работают.

[Pavel Obod · Rating 5 out of 5]

На днях дочитал книгу (начало 2020, с тех пор наверняка много воды утекло), которую я бы назвал Decentralised Finance. Я все же совсем начинающий в этой теме, поэтому, наверняка более опытные могут меня скорректировать.

Убедился в мнении, которое слышал от многих - что за этим действительно будущее финансов и вообще жизни. Когда-то кредитные карточки, банковские переводы были инновациями, а за таким финтехом на базе блокчейна - определенно уже наше финансовое сегодня и завтра. С 2018 по 2020г стоимость активов в DeFi увеличилась с $50mln до $1млрд. А на 29ое марта это $78,7млрд(!). Наверняка ковид подстегнул эту тему.

За всем этим стоит и определенная философия демократизации, анонимизация услуг, но я бы и не снимал проблемы информационной безопасности, мошенничества и вымогательства, которым блокчейн имхо тоже способствует.

Книга в тч проводит анализ с традиционными финансовыми механизмами. Где-то на 20% состоит из картинок и описания - как пользоваться конкретными тулзами

[Marlon vom Bruch · Rating 5 out of 5]

Even though I actively work in the space and have already read about a lot of the different protocols and talked to their teams, it still provided me with some great insights into different exciting projects that have only just begun building some interesting takes on traditional finance. Definitely a must read for anyone venturing into the future of finance.

[Edward Kuruliouk · Rating 4 out of 5]

An excellent primer on Decentralized Finance. It is simple yet comprehensive. The morphology is really well suited to education and the recommended readings at the end of each chapter further the books efficacy as learning material. There have been some major changes in the data since publication though, and those changes will only increase with time. For example; at the time of publication the total market cap of the space was $1B, whereas just under a year later the market cap has reached $52B. The statistics are dynamic so this isn't a problem, just be aware that the data in the first edition is very conservative relative to where the space is currently.

I have already used some of the information I've learned to generate a relatively significant increase in my net worth, so clearly I am biased, but I highly recommend this book to everyone looking to break into DeFi. I will also keep my eyes peeled for future publications by CoinGecko and hope they will be as well put together.

[Yk · Rating 5 out of 5]

Short and simple reading experience and understanding of Defi and its current usage and potential prospect. Recommended to anyone who wants to understand Defi without spending too much time to research or read in-depth on the topic.

My Personal Summary after reading the book:
Decentralised Finance (Defi) is a blockchain-based form of finance that does not rely on central financial intermediaries, such as exchanges, brokerage, etc through the use of Smart Contract. It saves time and money incurred by the middle man and bureaucracy. Finally, it allows anyone to access limitless financial instruments and opportunities regardless of their personal profiles, such as race, location, government, etc.

[Chd7y · Rating 4 out of 5]

How to DeFi provides an overview of the decentralised finance space and makes a case for its potential as an alternative to traditional financial services. It focuses on Ethereum as the base for smart contract which make the DeFi ecosystem possible.

Areas covered are lending and borrowing, exchanges, derivatives, payments insurance and more. The examples given as the market leaders for providing the various services are likely outdated given how fast the space has been growing but there is no substitute for doing one's own research.

Book is clearly aimed at beginners and covering topics at a basic level however for myself as somebody who has worked in financial services my whole career and familiar with the cryptocurrency space I still found it useful.

[DaniSanti · Rating 5 out of 5]

Great book to know Decentralized Finance (DeFi) from scratch.
I really liked this book as a newcomer to the DeFi world, it explains clear and concise the main topics about DeFi, such as exchanges, lending, borrowing, insurances, etc. with examples of each case and how-to guides for those examples.
Easy to read, easy to follow, easy way to start in DeFi.
Really recommend it, if you want to start navigating in the DeFi world, or you are just curious about the DeFi world.
Nota bene: it is from March 2020, bear in mind DeFi environment evolves very fast, and maybe there are newer (better) applications for the examples, but the underpining principles will remain the same.

[Mohamad Kalaaji · Rating 5 out of 5]

A good introduction to DeFi while keeping the info short and up to the point.

First time reading a book about crypto that doesn't bore me to death with unwanted information and the writers really did their work (I checked the glossary at the end of the book and marveled at the amount of resources being used like they did the homework right! So kudos to you guys).

As a person who never thought of getting into DeFi, this book motivated me to get started and where to start

[Satish · Rating 5 out of 5]

As someone who has already dabbled with Defi by using Aave, I had low expectations for the book since the space is exploding rapidly, I thought the book might be dated but I was wrong about that. This book has pretty good information on a wide variety of things within the space and also a lot of additional reading material after each chapter. Definitely recommend this book, it is well worth your time.

[Kunal · Rating 3 out of 5]

A great case study of the DeFi world.
Part 1 and 2 deal with a few basic concepts while the later ones use different DeFi apps to show a few ongoing things in the DeFi world.
I'd recommend creating a MetaMask wallet, putting some money in and actually trying everything out.
The only thing that I didn't like are the unnecessary step-by-step instructions for everything. The book could've been a bit shorter then.

[Daniil · Rating 4 out of 5]

Good book. It gives clear explanation on how to use different DeFi instruments, and what was more important for me — it explained fundamental DeFi concepts.
I guess, the book content will be soon outdated, but as of now, I've found only 1 unavailable link, also all the screenshots in the book are up to date.

[Dmitriy Rosputniy · Rating 4 out of 5]

A straightforward introduction to DeFi. The format is easy to digest and very practical.

At the same time, the book provides little in a way of insight into the future of DeFi, the possible unexplored applications or even the writers opinion on the subject matter. Instead it's just a catalogue, pure and simple.

[Sidharth Ramachandran · Rating 3 out of 5]

Strictly average. It is very informative for someone who’s completely new to the cryptography world but if you’ve tried to google your way then you already know a lot of what’s in the book. It reads more like a collection of blog posts rather than a book. I did learn about DeFi offerings that I hadn’t heard before so definitely useful.

[Harvey · Rating 3 out of 5]

This is a brief overview of the main notions and services of decentralized finance. The high level of detail given for a specific service at each chapter makes you wonder if the book is meant to explain DeFi or is meant to advertise for specific services.

It can be interesting if you are a complete beginner with the blockchain and cryptos.

[Fer Rodriguez · Rating 5 out of 5]

Excellent book not only to start with this amazing concept from the theoretical standpoint, but also from the practical standpoint as it includes invaluable step by step tutorials on how to operate with multiple descentralized apps.

[Mikas · Rating 4 out of 5]

Really feels like an extended blogpost. Also, the duration of the book is very short, so either you read it in the upcoming months, or it's outdated.
... or might be it's outdated already, but a good market landscape overview anyway.

[Blake Janover · Rating 4 out of 5]

A good beginners summary to DeFi. It doesn’t contemplate many of the flaws that exist so it’s a bit one-sided and it’s a year old so in the world of DeFi I guess it’s kind of out dated but it really touched on a lot of the basic dapps and use cases. It’s a very light read.

[Matt · Rating 5 out of 5]

Terrific summary of the DeFi ecosystem today and it's potential.

Teaches you the basics to getting started with decentralized finance. Great instructions and inspiration to any aspiring trader. If you want to learn about liquidity pools, swaps, and more, read this.

[Ahmed Tawfeeq · Rating 4 out of 5]

Excellent introduction to the world of DeFi. Even though I'm already involved in this space, it's hard to keep tabs on everything as innovations are springing up everyday. This book served as a nice tourist guide into the latest tools and innovations in DeFi.

[Jeffrey Dill · Rating 4 out of 5]

Super interesting but ultimately felt like a blog post that was stretched into a short book format.

DeFi is definitely the way forward, but man was I lost when they started getting into decentralized derivatives and decentralized insurance.

[Giuliano Marcus Bianco · Rating 4 out of 5]

Livro muito bom para iniciantes, tem bons exemplos e até passo a passo ensinando a usar as ferramentas. O problema é só que ficou datado, pois o universo defi se desenvolveu muito do ano passado pra cá. Uma segunda edição resolveria esse problema.

[A · Rating 3 out of 5]

This book is good for starters who want to understand the concept of DeFi and its application. The content, however, is quite superficial and provides overviews of several protocols or products. If you are into Defi, Twitter is a better source to keep being updated.

[David King · Rating 3 out of 5]

What is DeFi? It is a buzzword in Fintech. It is like the next step of blockchain and cryptocurrencies. The book gives a good summary of DeFi apps like Compound for high yield interest on cryptocurrencies.