2024/2025
Decentralized Finance
Language:
English
ECTS credits:
3
Contact hours:
30
Course Syllabus
Abstract
In general this course aims to:
• Explain fundamental concepts underpinning decentralized finance (DeFi) such as blockchain, distributed ledgers, consensus mechanisms, smart contracts.
• Give understanding of the ecosystem of decentralized financial applications and differentiate them from traditional financial systems.
• Identify and compare major categories of DeFi including stablecoins, lending, borrowing, decentralized exchanges, derivatives, payments and more.
• Analyze the economic incentives, governance mechanisms, risks and regulations associated with leading DeFi protocols.
• Evaluate transparency, accessibility, efficiency, and other benefits afforded by decentralized finance.
• Demonstrate limitations and challenges confronting the DeFi ecosystem related to scalability, interoperability, security, user experience.
• Show application of DeFi platforms to execute basic financial transactions such as taking loans, making payments, trading derivatives.
• Perform perspectives on the future evolution of decentralized finance and its potential disruption of mainstream financial industry.
Learning Objectives
- Explain fundamental concepts underpinning decentralized finance (DeFi) such as blockchain, distributed ledgers, consensus mechanisms, smart contract
- Give understanding of the ecosystem of decentralized financial applications and differentiate them from traditional financial systems
- Identify and compare major categories of DeFi including stablecoins, lending, borrowing, decentralized exchanges, derivatives, payments and more
- Analyze the economic incentives, governance mechanisms, risks and regulations associated with leading DeFi protocols
- Evaluate transparency, accessibility, efficiency, and other benefits afforded by decentralized finance
- Demonstrate limitations and challenges confronting the DeFi ecosystem related to scalability, interoperability, security, user experience
- Show application of DeFi platforms to execute basic financial transactions such as taking loans, making payments, trading derivatives.
- Perform perspectives on the future evolution of decentralized finance and its potential disruption of mainstream financial industry
Expected Learning Outcomes
- Define key concepts of decentralized finance such as stablecoins, exchanges, lending, insurance
- Classify major categories of DeFi and explain their purposes and mechanisms
- Analyze incentives, risks, regulations facing leading DeFi protocols like Compound, Aave, Uniswap
- Evaluate differences between centralized and decentralized financial systems.
- Explain how blockchain, smart contracts enable decentralization of finance.
- Discuss concepts like composability, liquidity pools, yield farming in DeFi
- Apply DeFi platforms and Dapps to conduct lending, exchange tokens, make payments.
- Scrutinize latest innovations like flash loans, prediction markets, NFTs in DeFi
- Forecast potential of DeFi to enhance financial access, efficiency, transparency.
- Identify challenges confronting DeFi ecosystem related to UX, regulations.
- Demonstrate concepts learnt through case studies and class projects on DeFi.
Course Contents
- Introduction to Decentralized Finance
- DeFi Building Blocks
- Decentralized Exchange Protocols
- Lending and Borrowing Platforms
- Derivatives and Asset Management
- Payments, Insurance and Other Innovations
Assessment Elements
- Evaluated TestsThese tests will assess conceptual knowledge on the risk measurement concepts learned during the course
- Final ExamA cumulative exam at the end of the course that will evaluate students on their holistic, integrated, and synthesized learning across all modules.
Bibliography
Recommended Core Bibliography
- Paweł Szewczyk. (2019). Application of Blockchain Technology in Supply Chain Management. Zeszyty Naukowe. Organizacja i Zarządzanie / Politechnika Śląska : Modernity of Industry and Sciences, 14, 591–600. https://doi.org/10.29119/1641-3466.2019.136.45
Recommended Additional Bibliography
- Yaga, D., Mell, P., Roby, N., & Scarfone, K. (2019). Blockchain Technology Overview. https://doi.org/10.6028/NIST.IR.8202
- Zilibotti, F., Van Reenen, J., Lelarge, C., Aghion, P., & Acemoglu, D. (2007). Technology, Information, and the Decentralization of the Firm. Scholarly Articles. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.p.hrv.faseco.4481506