►
Description
NOTE: As you cruise along this series, you will notice how fast the DeFi space is; both in terms of execution and change. So if you happen to spot a discrepancy between what is said and what is shown on screen, particularly in regards to numbers, it is due to that. Keep it in mind and have a look at the links provided below for updated data.
At first glance, DeFi -- or decentralised finance, can appear a little intimidating to get started with. For those who feel lost or don't know where to start, we've put together a series of films that will gently place you into the world of DeFi and explain what it is, how it works, and where to get started. We will cover the basics, and a little extra, concisely as possible. It is up to you to take the leap of faith.
Click here for more videos
https://bit.ly/2UukV0w
Join the Harmony Community
Discord https://discordapp.com/invite/rdCmBpe
Twitter https://twitter.com/harmonyprotocol
Telegram http://harmony.one/telegram
GitHub https://github.com/harmony-one
Reddit https://www.reddit.com/r/harmony_one/
https://harmony.one/
A
Decentralized
finance
has
enabled
many
to
discover
new
ways
to
passively
and
actively
earn
with
crypto
assets.
However,
all
that
upside
does
not
come
without
sizable
risk.
You
can
easily
lose
100
of
your
money
in
any
d5,
app
or
protocol.
You
decide
to
ape
into
we'll
outline
more
of
the
specifics
in
this
video,
but
above
all
else,
always
know
that
you
can
lose
it
all
in
a
single,
app
or
wallet
so
applying
a
simple
rule
of
thumb
can
help
mitigate
this
risk,
don't
deposit
more
into
any
app
than
you're
willing
to
lose.
A
A
the
first
major
project
to
resemble
what
we
now
call
d5
today.
Now
the
most
reputable
d5
team
attempts
to
mitigate
the
risk
of
bugs
by
hiring
better
developers
and
submitting
their
codes
to
auditing
teams.
However,
time
after
time,
we've
seen,
unaudited
code
and
audited
code
fail
a
d5
community,
sometimes
leading
to
losses
as
big
as
20
million
dollars
and,
if
you're
looking
to
mitigate
the
risk
of
smart
contract,
bugs,
thankfully,
there's
defy
insurance
from
the
likes
of
nexus
mutual,
which
we've
covered
in
another
video.
A
Next
up
is
less
specific
to
d5
and
probably
more
applicable
to
any
cryptocurrency
you
hold
in
a
non-custodial
wallet.
If
you
give
up
your
seed
phrase
or
tricked
into
entering
the
seed
phrase
into
a
fake
website
or
app
well,
that
means
you
can
lose
everything
in
that
wallet.
What's
in,
there
no
longer
belongs
to
you
so
a
lesson
here,
never
enter
your
seed
phrase
or
share
it
or
store
it
digitally
in
a
place
like
your
phone
or
computer.
That
could
be
hacked
oracle.
A
Oracle
failure
is
really
one
of
the
reasons
why
chain
inc
is
such
a
revered
project
solving
a
massive
challenge
in
d5's
adoption
next
is
admin
key
risk.
Now,
when
you
hear
of
rug
pulls
it's
usually
because
of
an
admin
key
now
we
always
have
to
be
on
the
lookout
for
centralized
admin,
controls
that
allow
a
developer
or
team
to
lock
or
move
funds
deposited
into
the
d5
app.
A
Now
there
are
also
liquidity
crises,
which
refers
to
a
lock-up
of
funds
and
a
lack
of
liquidity.
Simple
example
is,
if
you
lend
dye
to
other,
but
all
the
dye
is
then
subsequently
borrowed
and
the
app
indicates
a
hundred
percent
of
dye
is
utilized,
but
you
can't
get
your
die
out
until
some
borrowers
return
the
funds.
Now
this
is
less
likely
to
happen
as
much
less
concerning
as
a
risk,
but
one
nonetheless,
due
to
the
over
collateralized
loans
that
dominate
d5
so
yeah
it
could
happen.
A
There's
generally,
nobody,
you
can
ring
up
to
say
yeah
where's,
my
money,
mate
yeah.
What's
going
to
do
about
it,
yeah
you're
on
your
own,
think
about
that.
So
doing.
Research
on
videos
like
default
101
and
thinking
before
you
ape
is
highly
advisable.
We
should
put
that
on
a
t-shirt.
Think
before
you
wait.
You
heard
it
here.
First
get
the
merch.
A
Ethereum
composability
refers
to
the
ability
to
compose
applications
and
protocols
to
stack
them
on
top
of
each
other,
and
it's
why
ethereum
has
the
largest
most
active
developer
conferences,
and
it's
why
the
number
of
developers
that
build
on
ethereum
dwarfs
all
other
blockchains,
including
those
contributing
to
bitcoin.
This
composability
brings
lots
and
lots
of
builders
together,
the
more
applications
and
protocols
launched
the
more
tools
developers
have
available
to
build
with
and
so
on.
They
can
all
be
stuck
on
top
of
each
other.
A
That's
why
we
call
them
money
legos,
it's
a
flywheel
of
innovation
and
probably
the
one
attribute
about
ethereum.
That
kind
of
makes
it
impossible
to
replicate,
and
this,
of
course
is
where
money
lego
comes
from
in
d5.
Each
money
lego
can
stack
and
fit
with
lots
of
other
money
legos
to
benefit
the
overall
systemic
growth
of
d5
and
the
community's
ability
to
release
newer
and
better
applications
and
to
do
it
faster
and
to
generally
just
innovate.
A
D5
started
with
trailblazers
like
make
a
dao
and
dye
and
kyber
similarly
years
ago
now
and
we're
at
the
point
now
of
not
being
surprised
to
have
access
to
defy
powered
options,
yield,
automation
and
even
insurance.
Now
the
opposite
of
composability,
which
is
the
good
thing,
is
complexity
and
complexity,
may
well
be
the
biggest
enemy
to
adoption
and
part
of
what
holds
back
defy
from
growing
even
faster.
Not
everyone
can
be
financially
and
technologically
literate
to
leverage
these
new
money,
softwares
built
in
ethereum.
A
The
complexity
of
d5
might
impress
your
friends
and
family
at
dinner,
but
try
telling
that
to
your
girlfriends
or
boyfriends.
It
can
also
be
put
off-putting
to
those
not
wanting
to
spend
days
and
nights
learning
about
how
to
use
d5
and
crypto
is
hard
enough.
That
defy
adds
another
layer
of
complexity
on
top.
So
what
is
defy's
greatest
opportunity
is
also
one
of
its
greatest
challenges.
More
need
to
be
educated
to
benefit
from
this
more
democratized
access
to
technology.
A
Secondly,
we
have
the
permissionlessness
of
d5
to
enable
anyone
anywhere
to
participate
with
an
internet
connection
and
a
minimal
amount
of
funds,
they're
brave
enough
to
deposit.
Now
we
might
still
be
in
the
early
days
and
have
barely
scratched
the
surface
of
long-term
visions
to
bank
the
unbound.
But
we
are
now
living
through
radical
access
and
opportunity
for
anyone
anywhere
to
launch
software
that
can
take
in
hundreds
of
millions,
if
not
billions,
of
dollars
of
liquidity
without
asking
anyone's
permission,
and
they
do
it
fast
as
well.
A
Ethereum
is
a
sandbox
for
building
defined
money
games
and
everyone's
invited
to
play
just
exercise
a
modicum
of
caution.
Now
the
opposite
of
permissionlessness
might
be
regulatory
risks.
Now
d5
plays
in
a
space
of
innovation
that
has,
of
course
caught
the
eye
of
regulators
across
the
world,
most
notably
with
the
near
20
billion
dollars
in
stable
coins
and
in
2021.
We
can
expect
increased
regulatory
threats
to
those
building
and
participating
in
the
d5
community.
A
Sure
you
don't
have
to
ask
permission
and
d5
grew
liquidity
by
over
30x
in
2020,
what
about
being
priced
out
from
the
ability
to
use
define
and
even
just
in
the
last
couple
of
days
all
I've
heard
is
grumbling
from
people
saying
yeah,
there's
some
students
benson
against
guess
we're
going
to
hear
a
lot
more
of
that.
So
this
past
year
he's
brought
his
gas
prices
from
10
gwai
to
between
500
to
1
000
gwy
on
the
most
active
and
volatile
days
on
ethereum.
A
Thankfully,
this
is
a
challenge
countless
eth2
researchers
have
been
working
on
for
years
now
and
with
the
launch
of
phase
zero
with
ethereum
2.0,
the
coming
upgrade
to
proof
of
stake.
We
can
see
some
light
at
the
end
of
the
tunnel
for
these
painfully
high
fees
that
show
up
whenever
defy
gets
busier
with
new
applications
and
trading
activity.
But
of
course
we
also
have
other
layer,
one
protocols
with
faster
transactions
and
lower
fees
and
bridges
to
put
them
all
together.
Plus
we
have
l2
solutions
as
well,
so
the
future's
looking
bright.
A
I
don't
think
high
gas
fees
are
going
to
be
a
problem
for
much
longer
now.
The
key
takeaway
here
is
d5
much
like
other
transformational.
Technologies
that
came
before
it,
such
as
the
internet,
has
huge
opportunity
and
huge
challenges
ahead.
Now,
if
this
really
is
the
internet
of
money,
we
might
liken
where
we're
at
to
the
1990s.
A
But
humans
have
a
knack
for
underestimating
exponential
growth.
We
might
actually
be
living
to
the
1980s
or
an
earlier
parallel
time
frame
in
d5
now,
no
matter
where
we
are
in
that
journey,
there's
no
doubt
that
d5
is
a
genie
that
you
are
not
going
to
see
put
back
in
the
bottle.
This
is
not
icos
all
over
again,
so
I
know
what
you're
thinking
d5
can
be
hopelessly
confusing,
but
there's
countless
resources
that
have
seized
the
opportunity
to
provide
crucial
information
education
to
help
you,
along
in
your
d5
journey.
A
These
in
no
particular
order
or
ranking
are
our
top
10
defy
resources.
Firstly,
yeah
yeah,
us
no
surprise
there.
You
didn't
think
we'd
leave
ourselves
out.
Did
you
if
you've
enjoyed
this
d5
101
series,
there's
plenty
more
where
that
came
from
so
subscribe
to
the
defined
youtube
channel
for
more
videos
covering
the
most
interesting
most
extraordinary,
and
sometimes
just
downright
bananas,
developments
in
d5
and
don't
forget
to
subscribe
to
the
defined
newsletter,
which
is
the
longest
running,
define
newsletter.
It
goes
out
daily.
It
was
launched
back
in
june
2019..
A
Then
one
of
our
own
contributors
to
this
d510
series
is
defy
super
user
and
educator
d5
dad
so
subscribe
to
his
d5
tutorials
on
youtube.
By
going
to
d5dad.com
now,
d5
dad
is
known
for
doing
step-by-step
tutorials
on
how
you
can
do
everything
from
becoming
an
lp
to
more
sophisticated
yield
farming
strategy,
so
do
check
that
one
out
also
bookmark
d5pulse.com.
A
Not
only
do
they
have
the
most
updated
charts
on
total
value,
locked
or
tvl
for
the
most
liquid
apps
in
d5,
but
they
also
now
have
a
tracker
for
the
amount
of
tokenized
btc
on
ethereum,
which
is
getting
up
to
around
4.3
billion
dollars
at
the
moment.
Lastly,
d5
pulse
as
a
blog,
which
has
all
sorts
of
interesting
and
simple
to
understand
posts
on
fundamental
d5
topics,
also
check
out
bankless
a
newsletter
podcast
and
youtube
channel,
covering
the
latest
in
d5
and
more
tactically.
How
to
use
defy
apps
and
put
your
money
to
work.
A
A
How
to
d5
is
a
fantastic
ebook
created
by
the
team
of
dfi
experts
at
coin
gecko.
You
can
download
it
for
14.99,
with
the
link
provided
below
there's
also
yield
tv
by
zappa,
which
is
another
go-to
educational
resource,
hosted
by
d5
dad
they
do
weekly
lessons
on
d5
fundamentals
with
a
segment
called
d5
class,
while
covering
the
latest
news
in
d5
and
interviewing
the
biggest
names
and
those
up
and
coming
in
d5
discord.
A
There's
no
better
place
to
learn
and
dive
in
headfirst
than
to
join
a
discord
channel
for
one
of
your
favorite
new
d5
applications.
For
example,
communities
like
zappos
discord,
tend
to
have
more
general
discussions
on
all
things
defy
and
can
provide
opportunities.
Virtual
meetups
and
lessons
twitter
yeah
just
go
to
twitter
and
type
in
defile,
decentralized,
finance
and
you'll
be
exposed
to
an
abundance
of
daily
dialogue
openly
debating
the
future
of
p2p
bankless
finance.
A
Gas,
no,
not
the
black
oily
fuel
that
runs
your
car
and
pollutes
the
planet.
I'm
talking
bad!
Yes,
the
east
requires
a
power
every
transaction
on
ethereum.
Yes,
there's
a
term
that
was
coined
to
describe
the
east
or
ether
required
to
transact
on
the
ethereum
network.
So
each
is
money,
digital
money,
native
to
ethereum,
paid
to
miners
to
get
your
transaction
confirmed
in
a
blog
on
the
ethereum
blockchain.
A
Now
more
specifically,
every
transaction
that
occurs
on
the
network
requires
a
set
amount
of
yes,
which
is
the
unit
used
to
measure
the
computational
power
required
to
process
a
transaction
and
to
process
a
transaction
included
in
a
block.
Miners
are
expected
to
be
compensated
for
this
task,
and
this
is
accomplished
by
setting
a
gas
price
with
every
transaction,
which
is
the
cost
of
one
unit
of
gas
denominated
in
guay.
A
Yes,
price
is
what
everyone's
been
talking
about
since
the
summer
of
2020,
when
d5
exploded
see
when
more
people
are
competing
or
bidding
to
get
their
transactions
confirmed.
Yes,
prices
go
up
since
the
d5
apple
protocol
will
require
a
predetermined
amount
of
goose.
It's
the
gas
price
you
bid
that
determines
the
maximum
amount
of
ease
you
pay
as
network
fees.
To
summarize,
yes,
price
represents
how
much
ease
you're
willing
to
pay
for.
Yes,
when
you
send
a
transaction,
you
specify
the
guess
price
in
guay
per
guess,
where
one
guy
equals
no
point.
A
No,
no,
no,
no!
No!
No
one
e.
I
hope
I
said
that
right
did
I
say
that
right,
I'm
not
sure
the
total
fee
paid
equals
gas
price
time
gas
used.
So
if
you
understand
that
gas
price
is
the
one
variable
you
can
set
to
pay
more
or
less
each
of
transaction
fees
on
ethereum,
you
can
start
to
master
how
to
save
money
on
girls
in
d5.
A
All
of
them
tell
you
in
real
time
an
estimated
amount
of
time
to
confirm
your
transaction
based
on
how
high
or
lower
yes
price
you
pay
leverage,
l2
powered
apps
whenever
possible,
and
as
of
today,
we
know
that
synthetics
unit
swap
and
curve
are
all
building
with
l2
solutions,
which
should
enable
transactions
to
happen
in
a
few
hundred
milliseconds
and
for
pennies
per
transaction.
But
thankfully
there's
a
few
options
like
loopering,
an
l2
powered,
dex,
amm
and
ethereum
wallet
that
trades
at
2
000
transactions
per.
Second-
that's
quite
a
lot.
A
Lastly,
be
patient
in
most
cases
unless
you're
trading
on
an
amm
and
your
transaction
has
to
confirm
before
the
market
rate
changes.
Most
d5
related
transactions
can
sit
for
longer
and
lower
yes
prices,
while
you
wait
for
it
to
confirm
becoming
familiar
with
how
to
drop,
replace
a
transaction
using
this
video
by
d5.
Dad
can
save
you
lots
of
time
and
trouble
unsticking
a
pending
transaction
with
too
low
of
a
yeah
prize.
A
The
key
takeaway
here
is
that
girls
is
never
a
topic
of
joy
within
the
defy
and
ethereum
community,
but
by
learning
and
understanding
the
auction-like
bidding
process
to
set
prices,
one
can
save
lots
of
money
over
time.
A
simple
rule
of
thumb
is
if
your
ethereum
transaction
confirms
immediately
you're
overpaid,
find
ways
to
reduce
your
costs,
so
you
can
let
that
money
and
passive
income
in
other
d5
applications-
and
we
should
win
a
prize
this
year
for
the
most
use
of
the
word
gas
in
a
single
video.
Yes,
it's
a
common
question
in
d5.
A
What's
next,
what's
next,
what's
next
app,
honestly,
I
don't
know
well,
after
watching
this
series,
you
might
be
asking
yourself.
Indeed,
what
is
next
and
that's
what
is
so
magnificent
about
this
new
world
of
default?
We
don't
know,
but
whatever
it
is,
it's
coming
fast
and
furious
back
up
a
minute
to
appreciate
defy
in
2020
the
landmark
year
of
ethereum
to
date,.
A
You
can
ponder
regrets
at
having
not
bought
ether
as
little
as
85
during
the
pandemic
induced
market
crashes
in
march
long
before
the
most
recent
price
movements
to
a
thousand
dollars
plus,
but
put
that
to
one
side.
Instead,
where
we
saw
real,
meaningful
activity
and
adoption
is
quite
literally,
every
metric
across
d5,
the
crypto
analytics
newsletter.
A
Our
network
estimates,
500
000
active
addresses
and
a
million
users
were
participating
in
defy
at
the
end
of
2020
total
value,
locked
tvl,
the
almighty
meme
of
memes
of
memes,
the
meme,
the
memes,
the
memes
in
d5,
showed
about
a
20x
28x.
What
is
it?
It's
28x
increased
from
700
million
on
january,
the
1st
2020
to
just
over
14
billion.
A
A
year
later
in
2020
tokenized
bitcoins
grew
an
astounding
140x
from
about
1100
tokenized
bitcoins
to
over
140
000
tokenized
bitcoins
on
ethereum
worth
day
about
4.4
billion
dollars,
and
that
means
that
all
those
long-term
huddlers
of
bitcoin
are
starting
to
play
in
the
ethereum
sandbox,
and
that
is
a
good
thing.
Stable
coins
on
ethereum
balloon
to
about
20
billion
dollars
enough
so
that
u.s,
regulators
and
congress
representatives
got
all
frothy
around
the
collar
there.
What
are
we
going
to
do
about
this
stable
coin?
I'll,
tell
you
what
they're
going
to
do.
A
A
It
feels
like
we're
about
to
go
bananas
and,
if
you've
seen
our
videos
from
last
year,
you
already
know
that
we,
we
thought
we
went
bananas,
but
it's
gonna
go
even
more
bolo
ballistic
bonkers,
based
on
what
we
know
is
already
in
progress
and
being
worked
on.
The
future
of
d5
looks
like
this:
with
the
transition
to
proof
of
stake
on
ethereum
and
continued
advancement
of
layer,
2
solutions,
we
should
see
ethereum
defined
network
fees
dramatically
dropped
to
fractions
of
a
penny
per
transaction.
A
If
btc
keeps
going
up
in
value,
how
can
any
bitcoin
hodler
skip
the
opportunity
to
passively
earn
with
their
btc,
especially
when
there's
no
kyc
or
sign
up
required
d5
like
synthetics,
will
someday
allow
you
to
trade
pretty
much
whatever
you
want.
Forex
markets
commodities
like
gold
or
oil,
google
stock,
the
s
p,
500
index,
tesla
stock,
you
name
it.
A
Derivatives
trading
in
d5
on
ethereum
will
be
a
multi-trillion
dollar
market,
and
not
only
will
we
witness
these
sort
of
numbers,
but
this
trading
will
eclipse
the
volumes
traded
in
traffic,
because
what
trader
would
ever
want
to
trade
on
markets
during
limited
business
hours
where
they
can
trade
24
7
365
on
the
crypto
market?
Basically
meaning
there
is
money
to
be
made
anywhere
at
any
time
anytime
anywhere.
The
biggest
artists
musicians
and
athletes
in
the
world
will
turn
to
issuing
personal
tokens.
A
They'll
better
connect
with
their
fan
base
by
rewarding
them
with
tokens
that
represent
their
influence.
Kanye
west
might
well
introduce
a
yeezy
token.
The
next
michael
jordan
will
have
an
air
token
in
it.
Literally
anything
can
happen.
D5
will
eventually
erode
some
of
the
most
sacred
institutions
of
finance,
such
as
home
mortgages
and
once
d5
establishes
reliable
under
collateralized
lending,
it's
lights
out
now.
Why
would
anyone
turn
to
manually
emailing
all
their
personal
information
with
a
dozen
middlemen
involved?
A
Each
charging
a
fee
when
home
buyers
can
easily
get
instantly
approved
for
the
money
they
need
to
purchase
a
home
on
the
likes
of
ava
or
compound.
It
may
sound
like
fantasy,
but
this
is
really
just
around
the
corner
and
the
list
goes
on.
But
the
point
is
this:
we
as
humans
are
terribly
flawed
at
estimating
the
exponential
changes
that
come
about
from
technology,
and
this
is
a
yet
another
example
that
we
will
likely
all
look
back
upon
to
say.
A
I
just
didn't
understand
what
was
coming.
I
couldn't
see
it.
Well,
I
don't
blame
you.
So
all
we
can
do
is
stay
patient,
never,
stop!
Learning,
try
everything
new
and,
above
all
else,
enjoy
the
ride
that
is
defined
and
think
about
this.
If
you
can
think
it,
if
you
can
imagine
it
chances
are
somebody
somewhere
is
building
it.
The
internet
of
money
is
really
here,
so
you
best
not
bet
against
it.
You've
been
watching
d5101
do
be
sure
and
check
out
the
other
videos
in
this
series
and
subscribe
to
the
channel.