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Duke University

Decentralized Finance (DeFi) Primitives

DeFi and the Future of Finance is a set of four courses that focus on decentralized finance. The second course is called DeFi Primitives. It is recommended that you take the first course, DeFi Infrastructure, before this course. In this course, we talk about transaction mechanics and introduce both fungible and non-fungible tokens – or NFTs. The course explores the important issue of custody (holding private keys). The course then explores supply adjustment which includes the minting and burning of tokens. The mechanics of bonding curves are introduced. The course then explores the role of direct as well as indirect incentives in the DeFi system. We then analyze swaps or decentralized exchange. We begin by contrasting DEX with centralized exchange (e.g., Coinbase or Binance). The course details the mechanics of Automated Market Makers and provides a number of detailed examples. There is a discussion of impermanent loss as well as (legal) front-running. We end the course by exploring both collateralized and flash loans.

Status: Digital Assets
Status: Cryptography
IntermediateCourse6 hours

Featured reviews

SP

5.0Reviewed Jul 13, 2022

I​ like the way the professor communicates in this course. He is very clear and I can understand him. Thank-you.

MA

5.0Reviewed Dec 26, 2022

Great class giving us a very clear concise overview of the Defi space. I am currently wokring my own project called Fate Finance - which has some very unique protocols.

SS

5.0Reviewed Dec 30, 2025

Really enjoyed this! Well taught and easy to follow, a great introduction. Thank you.

MW

5.0Reviewed Nov 15, 2021

Excellent course in preparation for the Flare Finance platform to be released soon.

AS

5.0Reviewed Jan 31, 2022

DeFi Primitives gives an excellent idea of the exciting new world we are heading to in decentralized finance. Also highlights the need to contain energy costs and carbon emissions as we go along.

EL

5.0Reviewed Nov 22, 2021

Well taught!! I Suggest this to people who wants to start and know more about DeFi nd Crypto.

PS

5.0Reviewed Feb 19, 2023

Excellent for anybody who want to lean about Decentralized Finance. As I am an old Blockchain learner the 4th week of the course was way too easy.Thanks,Paras

TM

5.0Reviewed Dec 30, 2021

Course is very insightful. It broadens the scope of understanding the mechanisms involved from minute to complex transactions.

YD

5.0Reviewed Apr 8, 2022

Amazing! Lots of very useful information. Every second of this course provided interesting and education content.

DR

5.0Reviewed May 20, 2024

Very good information and the presentations and explanations were perfect.

VD

5.0Reviewed Jan 29, 2023

Exceptional teaching and very informative. This is 80% of the DEFI world.

TH

5.0Reviewed Aug 31, 2024

The AI help tool was also nice to stay involved. With attention deficit I struggle with focus but I am working on it.

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