Roadmap › Blockchain & Web3 Fundamentals › Module: Ethereum in Depth
Lessons in this course (15)
8. DeFi, NFTs and DAOs
IntermediateMediumLesson 8 of 15
- DeFi (decentralised finance): financial services as smart contracts — DEXs using Automated Market Makers (Uniswap: constant product
x × y = k, liquidity pools, LP tokens, impermanent loss), lending/borrowing (Aave, Compound: over-collateralised loans, liquidation), stablecoins, derivatives, yield aggregators, liquid staking (Lido). Key risks: smart-contract bugs, oracle manipulation, flash-loan attacks, liquidation cascades. - NFTs: ERC-721/1155 tokens representing unique items; metadata (name, image) usually stored off-chain on IPFS/Arweave with a
tokenURI; marketplaces (OpenSea, Blur); royalties (ERC-2981, not enforced on-chain universally). Uses beyond art: tickets, memberships, certificates, gaming items, real-world asset titles. - DAOs (decentralised autonomous organisations): governance by token holders voting on proposals (Governor contracts, Snapshot off-chain voting), treasury in a multisig (Safe). Risks: low participation, whale dominance, governance attacks.