Preface

Decentralized Finance (DeFi) is one of the most popular technologies of the Web3 era. It incentivizes people to come to the world of blockchain for investment and makes blockchain the Internet of Money. Since Ethereum was born, there have been tremendous Decentralized Applications (DApps) built on top of various blockchain networks. DeFi applications constitute a giant share of DApps because of the innovation they bring and their ease of adoption by new users.

There are many resources that introduce the Web3 revolution, including elaborating the concepts and usage of DeFi applications. However, when interacting with various DeFi applications such as Decentralized Exchanges (DEXs) or crypto loan systems, users may be curious about the concepts involved (such as liquidity pools), the mathematics behind the scenes, and how they might build a profitable DeFi application. This book will reveal the mystery and make you an expert in building various DeFi applications.

After exploring various DeFi applications on the market, I found that DeFi jargon and applications usually come from simple mathematics and classic financial principles. If you have an engineering background, it will be easier for you to dive in and implement DeFi concepts with code once you understand the underlying principles.

In this book, you will explore some of the most popular DeFi applications. For every DeFi application, you will start by learning what it is, how it works with the aid of mathematical formulas and architecture diagrams, and then implement the core – the math and the business logic – and finally, you will see how we wrap the core with UI code to make it a ready-to-use application.

There are thousands of DeFi projects on the market that offer various applications and continue to empower blockchain as the Internet of Money. A lot of traditional companies are approaching Web3 and especially applying DeFi to monetize their products and acquire customers. Meanwhile, Web3-native projects and start-ups are still booming. This book will help you gain practical experience in building and adopting DeFi and Web3 technologies for your projects and businesses.