You're reading from Building Full Stack DeFi Applications A practical guide to creating your own decentralized finance projects on blockchain

Product type Paperback

Published in Mar 2024

Publisher Packt

ISBN-13 9781837634118

Length 490 pages

Edition 1st Edition

Languages

Solidity

Tools

Blockchain

Concepts

Blockchain

Author (1):

Samuel Zhou

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Table of Contents (21) Chapters

Preface

1. Part 1: Introduction to DeFi Application Development FREE CHAPTER

2. Chapter 1: Introduction to DeFi

3. Chapter 2: Getting Started with DeFi Application Development

4. Chapter 3: Interacting with Smart Contracts and DeFi Wallets in the Frontend

5. Part 2: Design and Implementation of a DeFi Application for Trading Cryptos

6. Chapter 4: Introduction to Decentralized Exchanges

7. Chapter 5: Building Crypto-Trading Smart Contracts

8. Chapter 6: Implementing a Liquidity Management Frontend with Web3

9. Chapter 7: Implementing a Token-Swapping Frontend with Web3

10. Chapter 8: Working with Native Tokens

11. Part 3: Building a DeFi Application for Staking and Yield Farming

12. Chapter 9: Building Smart Contracts for Staking and Farming

13. Chapter 10: Implementing a Frontend for Staking and Farming

14. Part 4: Building a Crypto Loan App for Lending and Borrowing

15. Chapter 11: An Introduction to Crypto Loans

16. Chapter 12: Implementing an Asset Pool Smart Contract for a Crypto Loan

17. Chapter 13: Implementing a Price Oracle for Crypto Loans

18. Chapter 14: Implementing the Crypto Loan Frontend with Web3

19. Index

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Exploring the characteristics of a crypto loan

As we mentioned earlier, a crypto loan combines savings and loans together; this means the users have to deposit something via a smart contract as collateral before they can borrow assets. A crypto loan in the DeFi world has some unique characteristics, which are explained in the following sections.

Zero waiting time for approval

Everyone can get a loan immediately after providing the collateral. There is no need to provide other information or wait for approval before receiving the loan.

The loan qualification and the borrowing limit are determined by the value of collateral and the loan-to-value (LTV) parameter. LTV is a pre-configured parameter of an asset pool. Meanwhile, the borrowing limit also depends on the available assets in the asset pools. Here is the formula to calculate the borrowing limit () for a user: