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How DeFi Actually Works - and Why That Matters Before You Touch It

Course info

Most people use DeFi through interfaces - pools, swaps, dashboards - without ever seeing the system underneath. When things work, that’s fine. When they don’t, it’s confusing. And confusion is where most bad decisions start.

This course shows you what DeFi actually is, beneath the apps and features. Not as hype, not as “the future of finance,” but as a coordination system: who participates, how value moves, and why incentives exist in the first place.

You’ll learn how automated markets replace counterparties, how different roles interact, where power actually lives, and how risk appears - not as an event, but as a structural property of the system.

Skip this course, and DeFi stays a collection of tools.
Take it, and DeFi becomes a system you can reason about.

What You’ll Learn (to see the system clearly):

  • What DeFi is - and what it isn’t - beyond interfaces and slogans
  • The roles inside DeFi and how they interact
  • How automated markets work without buyers and sellers matching directly
  • The difference between protocols and platforms - and why it matters
  • How value flows through the system, and where risk quietly accumulates

What you gain isn’t confidence - it’s orientation. You stop guessing how things fit together.

Table of contents

How DeFi Works (Without the Buzzwords)
Article
What’s Really Happening When You Use DeFi
7min
Article
What DeFi Is - Without the Buzzwords
6min
Article
The Four Ways People Make (or Lose) Money in DeFi
10min
Article
How Swaps Work When No One Is on the Other Side
8min
Article
Who Can Change the Rules - and Who Can’t
7min
Article
Where the Money Comes From — and Where It Goes
10min
Article
The Risks That Don’t Look Like Risk at First
9min
Article
Why Easy-to-Use Doesn’t Mean Safe
10min