Lesson 14 of 1,000 · Adjusting Mentalities, Crypto Isn't Money
#14 What Is DEFI?
Decentralized finance rebuilds banking with code and no gatekeepers. Here's the honest primer on what it is and why it's huge.
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The unedited walkthrough for lesson 14 is not on the shelf yet. Read the lesson notes below in the meantime.
Key ideas
- Decentralized finance rebuilds banking with code and no gatekeepers.
- Here's the honest primer on what it is and why it's huge.
Do it now
- SolutionNo credit history? How crypto lending worksDeFi lending never asks for a credit score: on Aave you borrow against collateral you already hold, so you keep your savings and still get cash. With nothing to pledge yet, start an onchain record of references and repayments people can check. Borrow far below the limit. Skip these: borrowing what you cannot repay.
- UnlockForecast an event on a BNB Chain marketPredict Fun runs a prediction market on BNB Chain where prices come from traders and idle collateral can earn lending yield while your position is open.
- UnlockBorrow against crypto you already hold, no credit checkAave lends against collateral you deposit, so no credit score is asked for. You must deposit more than you borrow, and the collateral is sold automatically if its value falls too far.
- UnlockEarn staking yield on any amount of ETHLido lets you stake any amount of ETH and get stETH, which earns network rewards while staying usable.