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Lecture 2: How DeFi Works (Real-World Examples
DeFi runs on smart contracts (programs) on blockchains like Ethereum.
Example:
▪️ You deposit 1 ETH into a lending app.
▪️ The smart contract locks your ETH safely.
▪️ Someone else borrows your ETH and pays you 5% interest automatically.
Popular DeFi Apps:
▪️ Uniswap = Swap tokens (like a decentralized exchange)
▪️ Aave = Lend or borrow crypto
▪️ Curve = Trade stablecoins with low fees
▪️ MakerDAO = Borrow DAI (a stablecoin) against your crypto
Smart contracts = Trust the code, not people.
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