DeFi For Dummies

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Getting Started with DeFi
	Chapter 1 Introducing Decentralized Finance
		Demystifying DeFi
			From autonomous collectives to trillion-dollar DAOs
			Transacting in DeFi versus CeFi
				Borrowing assets
				Selling assets
			Dispelling harmful DeFi myths
		Going Full Circle: The DeFi-CeFi Infinity Loop
			Safeguarding wealth
			Transferring funds
			Continuing the cycle
		Deciding to DeFi or Not to DeFi
			Acknowledging inherent deficiencies in DeFi
			Recognizing CeFi problems that migrate into DeFi
			Identifying hurdles to adoption
		Contemplating the Future of DeFi
			The potential amazingness of seemingly unimportant applications
			Can we completely replace CeFi?
		Proceeding on Your DeFi Journey
	Chapter 2 Discovering the DeFi Lingo
		Introducing Key DeFi Terms
			Moving into the Web3 era
			Going the way of a DAO
			Characterizing blockchains and consensus protocols
			Describing cryptocurrencies and NFTs
			Defining smart contracts and dApps
			Getting acquainted with L1, L2, and the EVM
			Grasping important metrics: Market cap, volume, and TVL
		Knowing Important Distinctions
			Custodial versus noncustodial
			On-chain versus off-chain
	Chapter 3 Dabbling in DeFi: Getting Your Hands Dirty
		Setting Up Your Wallet
			Unmasking MetaMask
			Installing MetaMask
			Setting up MetaMask
			Renaming your account
			Working with MetaMask on your mobile device
				Installing MetaMask on your mobile device
				Getting around in MetaMask on your mobile device
		Funding Your Account
			Getting (Real) ETH
			Getting test ETH
	Chapter 4 Making Your First DeFi Transactions
		Decentralized Lending
		Decentralized Borrowing
		Executing a Trade on a Decentralized Exchange
		Unwinding and Closing Out
Part 2 Diving into the Burgeoning DeFi Space
	Chapter 5 Decentralized Assets
		Understanding Native Tokens
		Exploring Non-Native Tokens
			Stablecoins
			Wrapped tokens
			Governance tokens
			Security tokens
			Meme coins
		Differentiating Non-Fungible Tokens (NFTs)
	Chapter 6 Decentralized Exchanges and Marketplaces
		Understanding Liquidity Providers and Order Books
		Distinguishing between Custodial and Noncustodial Exchanges
		Exploring DEXs
			Decentralized order books
			Automated market makers
				Understanding the constant product market maker
				Growing and shrinking an existing liquidity pool
				Paying up versus getting paid
				Acknowledging limitations
			Hybrid liquidity and aggregators
		Navigating Marketplaces for Non-Fungible Goods
	Chapter 7 Decentralized Lending and Borrowing
		Making a Collateralized Loan
			Understanding the Compound lending protocol
			Revisiting DAI: A collateralized loan turned stablecoin
			Using price feeds: What is the collateral worth?
		Implementing a Flash Loan
			A tale of two CEXs: Arbitraging without flash loans
				Scenario 1
				Scenario 2
			A tale of two DEXs: Arbitraging with flash loans
			Noting the caveats: The steep price of failure
			Manipulating markets (the dark side of flash loans)
	Chapter 8 Decentralized Metaverses
		Introducing Decentralized Virtual Economies
			Paving the way for real-world possibilities
			Discovering decentralized metaverses
			Experiencing Decentraland
		Exploring the Metaverse
Part 3 Developing Your Own DApp: A Step-by-Step Guide
	Chapter 9 DeFi Building Blocks
		Introducing Public Blockchains
			Grasping the importance of a native token
			Understanding key pairs and digital signatures
			Touching on other types of distributed ledgers
		Explaining Consensus Mechanisms
			Proof of Work (PoW)
			Proof of Stake (PoS)
			Proof of XYZ
		Following a Day (or a Second) in the Life of a Transaction
			Determining transaction fees
			Understanding transaction times
			Tracing the journey of a transaction
		Streamlining the Development Process
			Leveraging smart-contract libraries
		Oracles: A Blockchain’s Divine Access to the Outside World
	Chapter 10 Smart-Contract Platforms
		Diving into Layer 1: Comparing Base Protocols
			Bitcoin
			Ethereum
			Ethereum Classic
			Binance Smart Chain
			Other EVM-Compatible Networks
			TRON
			Flow
			Cardano
			Solana
		Floating Up to Layer 2: Off-Chain Scaling Solutions
			State channels
			Plasma chains and sidechains
			Rollups
			Fraud proofs versus validity proofs
		Crossing Cross-Chain Bridges
	Chapter 11 Launching a Smart Contract on Ethereum
		Understanding Smart Contracts
			The birth of a smart contract
			Contract accounts versus “regular” (externally owned) accounts
			Smart-contract languages
			Anatomy of a smart contract
				Variables
				Functions
				Events
			Multiple inheritance: Can you have three or more parents?
		Launching Your Smart Contract
			Using the Remix IDE
			Entering your code
				Code, uninterrupted
				The play-by-play guide
			Compiling your code
			Pre-launch preparations
			Deploying your code
		Accessing Your Smart Contract
			Following your smart contract on a block explorer
			Interacting with your smart contract
				Sending funds to your contract account
				Withdrawing funds from your contract account
			Allowing others to interact with your smart contract
	Chapter 12 Launching a Smart Contract on the Binance Smart Chain
		Testing the Waters: How to Navigate the BSC Testnet
			Configuring MetaMask
			Launching your smart contract
			Accessing your smart contract
		Feeling Ready for Mainnet?
		Deploying onto Other EVM-Compatible Platforms
			Avalanche
			Polygon
			Cronos
			Fantom
			Arbitrum
			Huobi ECO (HECO)
			Celo
	Chapter 13 Launching Your First DeFi Product
		Proving Your Proof of Concept
			Identifying the market pain
			Assessing the competition
			Solidifying the value proposition
		Preparing Your Development Stack
			Setting up necessary accounts
			Setting up necessary IDEs
		Implementing the Back End of Your DApp
			Entering your code
				Code, uninterrupted
				The play-by-play guide
			Deploying your Crowdfund contract
			Following your Crowdfund contract
			Funding Crowdfund
			Verifying your Crowdfund contract
		Creating the Front-End User Interface
			Integrating the friendlier front end with the (less friendly) back end
			Nurturing your dApp
Part 4 The Part of Tens
	Chapter 14 Top Ten DeFi Applications
		Instadapp (INST)
		Compound (COMP)
		PancakeSwap (CAKE)
		JustLend (JST)
		Convex Finance (CVX)
		Curve (CRV)
		Uniswap (UNI)
		Aave (AAVE)
		Lido (LDO)
		Maker (MKR)
	Chapter 15 Top Ten Smart-Contract Platforms
		Optimism (OP)
		Arbitrum (N/A)
		Fantom (FTM)
		Cronos (CRO)
		Polygon (MATIC)
		Solana (SOL)
		Avalanche (AVAX)
		TRON (TRON)
		Binance Smart Chain (BNB)
		Ethereum (ETH)
Index
EULA