Foundations
DeFi, one moving part at a time
Pools, loans and bridges
Overview
Follow what changes when you swap, provide liquidity, borrow or cross a bridge. Work through the mechanics with imaginary balances.
Learning outcomes
- Explain how a pool quote is produced
- Separate a liquidity position from holding tokens
- Recognize liquidation risk
- Trace the assets and assumptions of a bridge
Before you begin
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Course syllabus
A pool is not a price sticker
Explain why changing trade size can change a swap quote.
6 min readProviding liquidity changes your basket
Compare a liquidity position with simply holding its starting assets.
6 min readCollateral needs room to breathe
Explain how falling collateral value can make a loan liquidatable.
7 min readA bridge changes more than the screen
Trace a cross-chain transfer and name the extra assumptions it introduces.
6 min read
Reviewed