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Duke University

Decentralized Finance (DeFi) Primitives

DeFi and the Future of Finance is a set of four courses that focus on decentralized finance. The second course is called DeFi Primitives. It is recommended that you take the first course, DeFi Infrastructure, before this course. In this course, we talk about transaction mechanics and introduce both fungible and non-fungible tokens – or NFTs. The course explores the important issue of custody (holding private keys). The course then explores supply adjustment which includes the minting and burning of tokens. The mechanics of bonding curves are introduced. The course then explores the role of direct as well as indirect incentives in the DeFi system. We then analyze swaps or decentralized exchange. We begin by contrasting DEX with centralized exchange (e.g., Coinbase or Binance). The course details the mechanics of Automated Market Makers and provides a number of detailed examples. There is a discussion of impermanent loss as well as (legal) front-running. We end the course by exploring both collateralized and flash loans.

Status: Digital Assets
Status: Market Liquidity
IntermediateCourse6 hours

Featured reviews

AS

5.0Reviewed Jan 30, 2022

DeFi Primitives gives an excellent idea of the exciting new world we are heading to in decentralized finance. Also highlights the need to contain energy costs and carbon emissions as we go along.

SP

5.0Reviewed Jul 12, 2022

I​ like the way the professor communicates in this course. He is very clear and I can understand him. Thank-you.

RT

5.0Reviewed Jul 19, 2022

W​ell designed and clear examples/analogies. Easy enough while some concepts are complex.

EL

5.0Reviewed Nov 21, 2021

Well taught!! I Suggest this to people who wants to start and know more about DeFi nd Crypto.

TM

5.0Reviewed Dec 29, 2021

Course is very insightful. It broadens the scope of understanding the mechanisms involved from minute to complex transactions.

PS

5.0Reviewed Feb 18, 2023

Excellent for anybody who want to lean about Decentralized Finance. As I am an old Blockchain learner the 4th week of the course was way too easy.Thanks,Paras

MA

5.0Reviewed Dec 25, 2022

Great class giving us a very clear concise overview of the Defi space. I am currently wokring my own project called Fate Finance - which has some very unique protocols.

SS

5.0Reviewed Dec 29, 2025

Really enjoyed this! Well taught and easy to follow, a great introduction. Thank you.

LT

5.0Reviewed May 26, 2022

Great content and explanation by Prof. Harvey! Love how he explain the terms using simple and understandable analogies that is applicable.

GM

4.0Reviewed Jun 18, 2022

I​t is an interesting cource. Gives basic understanding of DeFi Structure and how it works.

DR

5.0Reviewed May 19, 2024

Very good information and the presentations and explanations were perfect.

BP

4.0Reviewed May 24, 2025

The course is very easy to understand, but the information is from 2021. This is a concern.

All reviews

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