In this module we explored how decentralized finance replaces traditional banking with smart-contract-powered protocols. We saw how lending platforms like Aave and Compound automate loans, how decentralized exchanges such as Uniswap and Curve enable peer-to-peer trading, and how liquidity pools and yield farming let users earn returns. These innovations come with new trade-offs (e.g. smart contract exploits, impermanent loss), but they have dramatically opened up financial services to anyone with crypto.
Regulatory clarity, such as the EU’s MiCA framework, is fostering institutional adoption, while cross-chain bridges enhance interoperability. DeFi may not fully replace banks, as centralized systems offer regulatory comfort and user protections, but it challenges their monopoly, especially in underserved regions. By 2030, DeFi could manage 10% of global financial assets, reshaping banking’s future.
With this foundation, you’re now equipped to explore DeFi more confidently—whether that means lending assets, providing liquidity, trading tokens, or simply staying informed about this transformative technology.
Remember, DeFi is still in its early stages, so staying curious, vigilant, and adaptable will help you navigate its innovations safely and effectively.
Next, in Module 9 we'll cover NFTs, DAOs and the Web3 Ecosystem. We'll learn about non-fungible tokens and how they create digital ownership, as well as decentralized autonomous organizations that govern protocols.