- Zoom link for the class:
- Webinar ID: 940 3955 9132
- Passcode: 267548
- For general course content related questions, please join our discord.
|Dan Boneh||Arthur Gervais||Andrew Miller||Christine Parlour||Dawn Song|
|Stanford||Imperial College London||UIUC||UC Berkeley||UC Berkeley|
Volunteer Teaching Assistant
Kaihua Qin, Liyi Zhou, Yongzheng Jia
Synchronous lecture: 10:30am-12:30pm PT Thu, starting Aug 26; or follow online asynchronously with video lectures
Enrollment and Participation
To get more information about the course, please join this Google Group: [email protected]. To help us learn more about the background of the students, please fill in this form.
DeFi MOOC NFT (subject to change)
We will distribute NFTs for completion of the course. Below are the rules for different tiers:
Honorary Tier: Instructors, guest speakers, fireside chat speakers, TAs, and the most supportive students who help others on Discord and YouTube will be rewarded with special NFTs.
Legendary Tier: Students must complete at least 6 (out of 13) quizzes on time (before the following lecture date as specified on the website), and finish the two labs by 11:59:59pm 6th Dec 2021 PST with a grade of 16 out of 20 total points (5 points for Lab 1, 15 points for Lab 2).
Ninja Tier: Students must complete at least 10 (out of 13) quizzes and receive a grade of 10 out of 25 total points by 11:59:59pm 15th Jan 2022 PST
- 5 points for Lab 1
- 15 points for Lab 2
- 8 points for writing an article about relevant topic covered in this course or your experience of the course posted online, for example a blog article on:
- Summarizing information from certain lectures
- A postmortem on the learning experience
- Novel financial services on DeFi, such as flash loans or AMM exchanges.
The article’s marking criteria can be found below:
- Understanding (2 marks): Displays breadth and/or depth of understanding of the topic
- Importance (2 marks): Content conveys an important aspect of DeFi to the audience
- Clarity (3 marks): Explains complex concepts simply, clearly, and accurately
- References (1 mark): Cite the relevant lecture and reference materials such as research papers properly.
Please link to the course website (defi-learning.org) in your article and submit the article using this link: (https://forms.gle/vPBjLAkYsByiu7ye7)
Trailblazer Tier: Students must complete at least 10 (out of 13) quizzes and finish Lab 1 with a score of at least 4 out of 5 total points by 11:59:59pm 15th Jan 2022 PST.
Fireside chat series: the Future of DeFi
Syllabus (subject to change)
- Weekly quizzes
- Two lab exercises
- (Optional) Group project
All quizzes are released in parallel with (or shortly after) the corresponding lecture and will be due midnight the following Wednesday. Please remember to complete the quiz each week. Although it’s graded on completion, we encourage you to do your best. The questions are all multiple-choice and there are usually at most 5 per quiz.
|Lab 1 out (link)||10/01|
|Lab 1 due||10/12|
|Lab 2 out (link)||11/02|
|Lab 2 due||11/22|
Group Project (Optional)
(Non-Berkeley students only) Please fill out this Google form once your group has been finalised: https://forms.gle/8WbRgH3HwoLWGb6B7
The purpose of this class is to bring together students and interdisciplinary experts in Computer Science and Finance to discuss the emerging area of Decentralized Finance (or DeFi). DeFi has experienced an unprecedented growth, with hundreds of projects and a countless stream of financial, distributed systems, and blockchain innovations. The total value locked (TVL) in decentralized finance — a measure of the total value of assets committed to the DeFi ecosystem — has reached over $80 billion. When compared to the traditional centralized finance (CeFi), DeFi offers products and services serving similar financial goals, but critically innovates with novel capabilities such as instantaneous multi-billion USD flash loans. By utilizing blockchain and smart contract technologies, DeFi as a whole aims to provide a new platform for programmable, automated finance services that remove the reliance on central trust and intermediaries.
Our goal is to provide a framework to understand this new area of financial services. For each finance function, we will consider 1) the current intermediated structure, and then b) the DeFi version (actual or proposed) that fulfills the function. Is either one of these optimal? We will evaluate both through the lens of CS and finance. Is the application computable (efficiency, decidable), programmable (automatic)? Is the application welfare-enhancing and stable (not a source of systemic risk). How do the new and old systems interact? We aim for the students to be able to critically evaluate whether a new DeFi protocol is novel and practical. We further will capture the security danger in DeFi, as well as their impact on the underlying consensus security. Lastly, we hope to give an insight into how to program and structure secure and incentive-compatible DeFi applications.
Through the exposure to cutting-edge research as well as remaining open challenges, we hope for our students to quickly integrate into academic as well as industrial projects related to DeFi.
Summarizing, we will cover a broad spectrum of topics, including:
A comprehensive introduction covering a computer science and finance background required for the remainder of the course. We will discuss the basics of decentralized systems, permissionless blockchains, consensus, smart contracts and contrast DeFi to traditional finance.
We will cover the computer science and economic aspects of DeFi assets, and how they link to CeFi through stablecoins. The course will elaborate on DeFi asset exchanges and contrast the traditional limit order book models to automated market makers. Just like in CeFi, debt and derivatives play a fundamental role in DeFi. We’ll dive into the various debt models, such as under- and over-collateralized debt, as well as synthetic assets in DeFi. Insurances, portfolio management and prediction markets form equally crucial elements to a decentralised economy as we will elaborate on. Last but not least, we will show different attempts at measuring and tracking systemic risk and its computability.
To link blockchains with financial information from the real-world, we will provide a deep-dive into oracles. We will discuss decentralized reputation, identities and proof of properties. Because most DeFi is transparently readable, including transaction amounts, fees, dates/times, etc, privacy plays an increasingly important role in DeFi. We will cover various privacy technologies including zero-knowledge proofs and their applications in DeFi. We will also discuss various attempts at how to enforce data ownership, data monetization and valuation as well as controlled use and misuse of data.
A digital economy would not thrive without strong security. We will outline the many past security attacks, introspect a few of them in closer detail and provide recommendations on how to strengthen DeFi security. We will discuss the systemic risks stemming from Miner Extractable Value (MEV) and how MEV can be minimized by design. Decentralized governance provides power to a pseudonymous collective, and we will explore how governance works, and how it may be attacked.