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Practical / Explained visually
DeFi: follow the money and the risk
A practical introduction to decentralised finance, where returns come from, and the risks behind them.
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The idea,
in words.
Financial actions in code
Decentralised finance uses smart contracts for activities such as swapping, lending and borrowing. Access often begins through a wallet.
Pools make activity possible
Some services pool assets so others can trade or borrow. Returns may come from fees, interest or token incentives.
Yield has a source and a risk
Risks include software failures, price changes and liquidation of collateral. A displayed yield is not a promised return.
Understand where returns come from
Before using a service, explain where returns come from, how withdrawals work and how you could lose money. If you cannot, keep learning first.