Decentralized Finance (DeFi) Deep Dive (Coursera)

We will look at Credit and Lending (and feature MakerDAO, Compound and Aave), Decentralized Exchange with an analysis of how protocols like Uniswap and Balancer works, Derivatives (featuring Yield Protocol, dYdX and Synthetix) and Tokenization with an analysis of Set Protocol as well as wrapped bitcoin. For many of these leading protocols, we include detailed examples of how the mechanics work. For example, we show how to use a dYdX flash swap to execute an arbitrage transaction (take advantage of different prices on different exchanges for the same asset).

What You Will Learn

- Mechanics of credit and lending protocols; Decentralized exchange implementations; Derivatives and tokenization protocols.

Syllabus

WEEK 1

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.

WEEK 2

Decentralized Exchange

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.

WEEK 3

Derivatives

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.

WEEK 4

Tokenization

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.

Prerequisites

It is essential to complete Course I: Decentralized Finance (DeFI) Infrastructure and Course II: Decentralized Finance: DeFi Primitives.