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defi

A collection of 17 issues

Yield Farming Lite: Earning Interest on Stablecoins Safely

Introduction Yield farming took the crypto world by storm in 2020, promising eye-watering returns for those willing to stake tokens in decentralized finance (DeFi) protocols. Yet the complicated strategies, volatility, and smart-contract risks scared off many everyday investors. "Yield Farming Lite" is emerging as a simpler, safer on-ramp

Understanding Liquidity Pools: The Backbone of DeFi Trading

What Is a Liquidity Pool? A liquidity pool is a crowd-funded reservoir of digital assets locked in a smart contract. It replaces traditional order books by always offering a price for token swaps, enabling decentralized exchanges (DEXs) like Uniswap, PancakeSwap, and Curve to operate 24/7 without relying on centralized

What Is a Governance Token? A Complete Guide for 2024

Introduction to Governance Tokens A governance token is a special type of cryptocurrency that grants its owners voting power within a decentralized project or protocol. By holding the token, users can propose, debate, and decide on changes to smart contracts, fee structures, and strategic roadmaps, enabling transparent blockchain governance without

Decentralized Finance (DeFi): The Future of Open Finance

Introduction to Decentralized Finance (DeFi) Decentralized Finance (DeFi) is a rapidly growing ecosystem that rebuilds traditional financial services—such as lending, borrowing, and trading—on public blockchains like Ethereum. By removing centralized intermediaries, DeFi platforms empower users to control their assets directly through cryptographic wallets and transparent smart contracts. How

Flash-Minted Stablecoin Attacks: Anatomy and Defense Strategies

Introduction In the fast-moving world of decentralized finance (DeFi), stability is often treated as a hard guarantee. Stablecoins, pegged to fiat currencies, are trusted across lending pools, derivatives, and automated market makers (AMMs). Unfortunately, 2023 and 2024 have shown that even "stable" assets can be turned into weapons

DAO Treasury Rebalancing: Dynamic Allocation Between Productive and Reserve Assets

Introduction: The New Frontier of Treasury Management Decentralized Autonomous Organizations (DAOs) have disrupted traditional governance models, but many still rely on archaic treasury strategies that leave capital under-utilized or over-exposed to market swings. DAO treasury rebalancing—specifically dynamic allocation between productive and reserve assets—offers a systematic pathway to preserve

Decentralized Exchange Aggregators: Path-Finding Algorithms and Gas Cost Trade-Offs

Introduction: The Rise of the Meta-DEX Decentralized exchanges (DEXs) allow anyone to swap tokens without surrendering custody, but liquidity is fragmented across hundreds of pools and chains. Decentralized exchange aggregators (often called meta-DEXs) solve this fragmentation by scanning multiple liquidity sources and stitching together the cheapest possible route for a

Automated Market Maker Curves Beyond x*y=k: Dynamic Pegged Bonding Curves

Introduction: The Evolution of Automated Market Makers Automated Market Makers (AMMs) revolutionized decentralized finance by eliminating the need for order books and letting smart contracts determine prices through mathematical formulas such as the famous constant-product equation x*y=k. Protocols like Uniswap proved that simple curves could unlock nearly frictionless

Composable DeFi Derivatives: Building Nested Options and Futures Positions

Introduction to Composable DeFi Derivatives Decentralized finance has evolved from simple token swaps to complex financial engineering. One of the most promising frontiers is the creation of composable derivatives, financial contracts that can be stacked, nested, and re-combined like Lego bricks. By leveraging on-chain transparency and open standards, traders and

Impermanent Loss Insurance: Emerging Protocol Designs and Viability

Introduction to Impermanent Loss Insurance Impermanent loss insurance is rapidly becoming one of the most talked-about risk-management products in decentralized finance (DeFi). Liquidity providers (LPs) who supply token pairs to automated market makers often discover that price divergence wipes out a portion of their expected yield. Although trading fees and