DeFi Lending explores the transformative potential of decentralized finance (DeFi) lending platforms, examining how they may disrupt traditional financial institutions. It delves into the mechanics of DeFi, highlighting the interest-earning opportunities like yield farming and liquidity mining, while also addressing the risks involved, such as impermanent loss. With DeFi offering increased accessibility and automation, the book assesses its viability as an alternative to traditional banking for a growing segment of the population.
The book journeys through fundamental DeFi concepts like smart contracts and decentralized exchanges, before dissecting leading lending platforms such as Aave and Compound, and detailing their governance and risk management. By using on-chain analytics and industry reports, the book analyzes the interest-earning opportunities available, weighing potential rewards against associated risks and regulatory challenges. It progresses from foundational concepts to platform-specific analyses, concluding with a comparison of decentralized and centralized platforms.
