Delivered at:: HSE Banking Institute

Course type:: Elective course

When:: 2 year, 1 module

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 Tests
These tests will assess conceptual knowledge on the risk measurement concepts learned during the course
Final Exam
A cumulative exam at the end of the course that will evaluate students on their holistic, integrated, and synthesized learning across all modules.

Interim Assessment

2024/2025 1st module
0.4 * Evaluated Tests + 0.6 * Final Exam

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

Authors

ELIZAROVA IRINA NIKOLAEVNA
Кузюкова Юлия Игоревна
MISCHENKO VYACHESLAV VLADIMIROVICH

Master's Program 'Financial Analyst'

CONTACTS

Decentralized Finance

Course Syllabus