Decentralized Finance 101

1. May 2021
Decentralized
Finance (DeFi) 101
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2. Outline
Slide Topic
3-9 What is DeFi?
10-15 DeFi Examples
16-20 Other Innovations
21-26 Resources
27 Conclusion
28 Questions?
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3. What is DeFi?
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4. Evolution of the Internet
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5. DeFi Timeline
Bitcoin kicked off the idea of decentralization in finance but
Ethereum really made it happen with smart contracts.
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6. What is Decentralized Finance (DeFi)?
DeFi is a form of finance that does
not rely on central financial
intermediaries such as
brokerages, exchanges, or banks
to offer traditional financial
instruments.
Instead it relies on a decentralized
platform using distributed ledger
technology called the blockchain.
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7. The Blockchain
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8. Traditional vs DeFi
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9. The Layers of DeFi
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10. DeFi Examples
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11. Real World DeFi Products
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12. MakerDAO - https://makerdao.com/
● MakerDAO has a stablecoin called DAI that is pegged to the
US Dollar
● MakerDAO wants to be a decentralized reserve bank
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13. Uniswap - https://uniswap.org/
● Uniswap is a distributed
exchange (DEX) that provides
an automated market making
function
● You would use this exchange if
you wanted to switch from one
token to another
● In a traditional exchange you
would have a single institution
that provides liquidity using an
order book to match buyers and
sellers
Traditional Order Book 13

14. Uniswap
● Anyone can participate as a liquidity provider and get compensated
● Uniswap charges 0.30% to swap between tokens and the full 0.30% goes to the liquidity
provider (LP)
● In the future, 0.25% will go to the LP and 0.05% will go to the Uniswap Governance, which is
a Distributed Autonomous Organization (DAO)
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15. Compound - https://compound.finance/
● Compound is a lending and borrowing platform
● If you have tokens in your cryptocurrency wallet, you can lend them to
others and earn interest on them
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16. Other Innovations
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17. How is a JPEG worth $69 million?
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“Everydays: The First 5000 Days”
by Beeple

18. What is an NFT?
● Fungible means something
can be interchanged, such as
a one bitcoin can be swapped
with another bitcoin
● A non-fungible token (NFT) is
simply a unique digital asset
● NFTs use the same
technologies as DeFi -
blockchain and
cryptocurrencies
● NBA Top Shot is an example
of an NFT platform
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https://nbatopshot.com/

19. CryptoPunks - https://www.larvalabs.com/cryptopunks
● CryptoPunks is an NFT art project that
was released in June 2017
● They are 24x24 pixel art images,
generated algorithmically
● There are only 10,000 unique
CryptoPunks assets
CryptoPunk #7804
sold for $7.5 million in
March 2021
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20. Distributed Autonomous Organization (DAO)
● In DeFi even the management is
distributed using something
called a Distributed Autonomous
Organization (DAO)
● For example, Uniswap is
technically a protocol and
changes to the protocol need to
be voted by the DAO
● In Uniswap you receive tokens
when you provide liquidity and
those tokens are like votes
Uniswap UNI token https://etherscan.io/token/0x1f9840a85d5aF5bf1D1762F925BDADdC4201F984 20

21. Resources
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22. Decrypt - https://decrypt.co/
● News on Bitcoin, Ethereum and DeFi
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23. CoinMarketCap - https://coinmarketcap.com/
● Real-time cryptocurrency prices and other DeFi related products
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24. DeFi Pulse - https://defipulse.com/
● Tracks the biggest Decentralized Apps (Dapps)
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25. DappRadar - https://dappradar.com/
● Another website that tracks DeFi Dapps
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26. Modern Finance Podcast - https://www.modern.finance/
● The Modern Finance
(MoFi) podcast covers all
things cryptocurrency,
DeFi, yield farming, NFTs,
robo-investing, finance
hacks, and more
● It’s hosted by Kevin Rose
who has been around
technology since the
2000s
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27. Conclusion
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● The current hype around
Bitcoin, Ethereum and NFTs
is very similar to the dotcom
bubble
● Many companies and ideas
will not survive but the core
technology and
decentralization thought
process is here to stay

28. Questions?
https://celestri.org
mrjain@gmail.com
v1.5
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