Decentralized Finance (DeFi) Opportunities and Risks

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Decentralized Finance (DeFi) Opportunities and Risks

This course is part of Decentralized Finance (DeFi): The Future of Finance Specialization

Instructor: Campbell R. Harvey

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5 modules

Gain insight into a topic and learn the fundamentals.

357 reviews

Intermediate level

Recommended experience

6 hours to complete

Flexible schedule

Learn at your own pace

5 modules

Gain insight into a topic and learn the fundamentals.

357 reviews

Intermediate level

Recommended experience

6 hours to complete

Flexible schedule

Learn at your own pace

What you'll learn

A framework to evaluate DeFi risk; Environmental implications of cryptocurrency; and winners and losers in the future of finance.

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Assessments

4 assignments

Taught in English

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This course is part of the Decentralized Finance (DeFi): The Future of Finance Specialization

When you enroll in this course, you'll also be enrolled in this Specialization.

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There are 5 modules in this course

DeFi and the Future of Finance is a set of four courses that focus on decentralized finance. The final course is called DeFi Opportunities and Risks. It is essential that you complete the first three courses: I. DeFi Infrastructure; II. DeFi Primitives; and III. DeFi Deep Dive before beginning the fourth course. The course starts with the premise that an analysis of any new technology must clearly gauge the risks and challenges. Given that DeFi is only a few years old there are plenty of risks. The course begins with the most obvious risk: smart contract risk. Smart contracts are foundational for DeFi. The code of these contracts is public - opening a clear attack vector for hackers. That is, in traditional finance, hackers need to break into a system to get access to the code and data. In DeFi, everything is open source.There are many other risks studied including: Governance risk; Oracle risk; Scaling risk; Decentralized Exchange or DEX risk; Custodial risk; Environmental risk; and Regulatory risk.

The first model explores both logic errors and economic exploits that characterize smart contract risk. We then focus on some specific exploits including the Yearn.finance exploit that utilized a massive flash loan.

What's included

4 videos2 readings1 assignment

The second model explores additional risks including governance attacks, DNS attacks, oracle vulnerabilities, and DEX risk. The module ends with an exploration of the different types of custodial arrangements and the risks that each approach creates.

What's included

5 videos1 assignment

Scaling risk is one of the biggest risks facing DeFi. Current capacity of the Ethereum blockchain is only about 15 transactions per second whereas the Visa network is 65,000. This module explores potential solutions to the scaling problem.

What's included

4 videos1 assignment

The final module explores the regulatory risk that the DeFi space faces from KYC/AML to the potential declaration that some DeFi tokens are securities. Central bank digital currencies are also explored. We then explore the environmental impact of Proof of Work consensus and the migration to the environmentally friendly Proof of Stake.

What's included

3 videos1 assignment

What's included

2 videos1 reading

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Instructor

Instructor ratings

(122 ratings)

Campbell R. Harvey

Duke University

8 Courses87,532 learners

Offered by

Duke University

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Reviewed on Dec 29, 2021

Excellent overview of the opportunities and risks of DeFi as of the end of 2021. Look forward to helping define the future of DeFi based on the understanding gained from these courses.

Reviewed on Jul 6, 2022

The instructor wasperfect and the material provided in the course was really good. i suggest this course for people who are interested in Crypto.

Reviewed on Aug 8, 2022

Working in this field on a daily basis, this is the best course that gives an overview of DeFi in its entirety: tech, protocols, risks

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Frequently asked questions

To access the course materials, assignments and to earn a Certificate, you will need to purchase the Certificate experience when you enroll in a course. You can try a Free Trial instead, or apply for Financial Aid. The course may offer 'Full Course, No Certificate' instead. This option lets you see all course materials, submit required assessments, and get a final grade. This also means that you will not be able to purchase a Certificate experience.

When you enroll in the course, you get access to all of the courses in the Specialization, and you earn a certificate when you complete the work. Your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile.

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.