Introduction to DeFi
Decentralized finance (DeFi) is one of the most popular topics when it comes to the cryptocurrency world. There are billions of dollars worth of cryptocurrencies running through various DeFi products every day. More and more cryptocurrency and blockchain projects started to build DeFi applications to expand the user communities and generate more cryptocurrency incomes.
In this chapter, we’ll introduce DeFi by explaining its main characteristics and terminologies. Then, we will cover some popular DeFi applications, and demonstrate the architecture of DeFi applications. Finally, we will discuss the vulnerable design and implementations of DeFi and their solutions. The topics that will be discussed in this chapter are essential to building DeFi applications and will help you understand how various DeFi applications work on blockchain.
By reading this chapter, you will do the following:
- Get an overview of DeFi and understand its main concepts
- Learn what people can do with several types of DeFi applications
- Understand the architecture of DeFi applications
- Discover the potential vulnerabilities in DeFi applications and their solutions
