Beginner
This guide is the beginner entry point for DeFi. It focuses on mental models, core primitives (Stablecoin, AMM/DEX, Lending), and security hygiene. Deeper topics (MEV, perps/options, structured products, cross-chain design) belong in Intermediate and Advanced.
Legend: ★ marks the most recommended resources.
Learning Path
graph TB
A["DeFi"]
A --> S["Stablecoins"]
A --> D["DEX / AMM"]
A --> L["Lending / Borrowing"]
A --> LS["Liquid Staking"]
Suggested order (beginner-friendly):
- Stablecoins (unit of account)
- DEX / AMM (swap + liquidity)
- Lending / Borrowing (collateral + liquidation)
- Liquid Staking (LST basics)
Cross-cutting concepts (learn as needed): Oracles, bridges, MEV, and basic security hygiene.
Choose by Goal
| Goal | Focus categories | Minimal action | What to verify |
|---|---|---|---|
| Swap tokens | DEX / AMM | Swap a small amount on a reputable UI | Domain & chain/network, token address, slippage, route, fee, min received, approvals/delegates, verify tx in explorer |
| Earn yield (simple) | Stablecoins, Lending / Borrowing | Supply a stablecoin to a lending market | APY source (interest vs incentives), withdrawal path, approvals/delegates, protocol risk, verify tx in explorer |
| Earn yield (liquidity) | DEX / AMM | Add liquidity to a 2-token pool, then remove it | LP shares, fee income vs price changes, impermanent loss risk, approvals/delegates, verify tx in explorer |
| Borrow against assets | Lending / Borrowing, Oracles | Deposit collateral and borrow a small amount | Health factor, liquidation threshold/price, interest rate, oracle dependency, approvals/delegates, verify tx in explorer |
| Liquid staking | Liquid Staking | Stake to mint an LST, then redeem (if supported) | LST discount/depeg, withdrawal queue, validator/contract risk, verify tx in explorer |
Milestones:
- Explain Stablecoin, AMM, Liquidity Pool, LP Token, APR vs APY, Collateral, and Liquidation in your own words.
- Do a Swap, add/remove Liquidity, and understand where fees come from.
- Deposit Collateral, Borrow, repay, and track health factor / liquidation price.
- Review token approvals/allowances (or delegates) and revoke anything risky.
Category notes:
- Stablecoins: collateralization/peg mechanism, depeg risk, issuer risk, redemption path.
- DEX / AMM: slippage/price impact, fees, impermanent loss (LP), MEV (high-level).
- Lending / Borrowing: collateral factor, liquidation threshold, interest rate model, oracle risk.
- Liquid Staking: validator & smart contract risk, LST discount/depeg, withdrawal queue (if any).
- Later (optional): Yield aggregators, derivatives (perps/options), bridges, and MEV mechanics.
Minimal Must-Learn Path
Recommended MVP duration: 1 week. If a resource is long, complete only the required part listed in each step.
- Article (Day 1): read ★DeFi. Required outcome: explain Stablecoin, AMM, Lending, and Liquid Staking in your own words.
- Video-first intuition (Day 2): watch selected beginner videos from ★Finematics. Required outcome: understand how swaps, pools, LP fees, and liquidation work conceptually.
- Course (Day 3-4): complete beginner-relevant DeFi sections from ★LearnWeb3: Stacks Developer Degree and use DeFi Learning (F22) as supplementary reading. Required outcome: map each DeFi primitive to one real protocol use case.
- Book (Day 5-6): read selected chapters from ★DeFi and the Future of Finance. Required part: market structure, protocol primitives, and key risks.
- Consolidation (Day 7): skim risk-oriented sections in How to DeFi Advanced and reinforce with 2-3 topic videos from Whiteboard Crypto. Required outcome: complete one safe practice flow (swap or lending) and verify approvals + tx details in an explorer.
Recommended Articles
- ★DeFi - Beginner-friendly overview of DeFi, common primitives, and risks.
Recommended Courses
- ★LearnWeb3: Stacks Developer Degree - A structured, hands-on curriculum for learning Web3 development on Stacks (Bitcoin L2), including smart contracts and building real projects.
- DeFi Learning (F22) - A course-style collection of DeFi topics and readings focused on protocol design, mechanics, and risk trade-offs.
Recommended Books
- ★DeFi and the Future of Finance - A overview of DeFi fundamentals, market structure, and how DeFi may reshape traditional finance.
- How to DeFi Advanced - An advanced DeFi guide covering more complex primitives, strategies, and risk considerations.
Recommended Videos
- ★Finematics: An education-focused channel that explains DeFi concepts (AMMs, liquidity pools, lending, and smart contract mechanics) with clear, structured breakdowns.
- Whiteboard Crypto: A whiteboard-style education channel that uses analogies and simple visuals to make crypto, blockchain, and DeFi topics easy to understand.
Notable Protocols
Ethereum
| Protocol | Category | Links |
|---|---|---|
| Uniswap | DEX / AMM | App · Docs |
| Aave | Lending / Borrowing | App · Docs |
| Compound | Lending / Borrowing | App · Docs |
| Curve | DEX / Stable-swap AMM | App · Docs |
| MakerDAO | Stablecoin (DAI) / CDP | App · Docs |
| Lido | Liquid Staking | App · Docs |
| Yearn | Yield Aggregator | App · Docs |
Solana
| Protocol | Category | Links |
|---|---|---|
| Jupiter | DEX Aggregator | App · Docs |
| Orca | DEX / AMM | App · Docs |
| Raydium | DEX / AMM | App · Docs |
| Kamino | Lending / Leverage | App · Docs |
| marginfi | Lending / Borrowing | App · Docs |
| Drift | Perpetuals (Perps) | App · Docs |
| Marinade | Liquid Staking | App · Docs |