What DeFi does: financial functions in composable contracts
Swaps, lending and asset management can connect, but those links can also transmit risk.
Read in Chinese →Learning topics
DeFi
Swaps, lending, liquidity and liquidation mechanisms.
Titles and summaries are in English. Articles marked “Chinese article” open the Chinese original.
12 articles
All articles →How AMM pools set prices: a simple swap example
AMMs quote from reserves and rules. A trade large relative to pool depth usually has more price impact.
Read in Chinese →A DEX swap workflow: verify the token and the amount actually received
Wallet connection, approval and swapping may be separate actions. Understand each one.
Read in Chinese →Impermanent loss: fee income can still underperform holding
Compare with holding the same starting assets, not merely whether the pool balance increased.
Read in Chinese →Concentrated liquidity: why narrower ranges need more management
Concentrating funds in a price range does not guarantee continuous fee income.
Read in Chinese →Supplying to lending protocols: interest, receipts and withdrawal liquidity
A growing balance does not guarantee you can withdraw all principal at any time.
Read in Chinese →Borrowing against collateral or selling: the obligations behind retained exposure
Borrowing preserves some asset exposure but adds interest costs and liquidation risk.
Read in Chinese →Aave's health factor: why your distance from liquidation changes
Collateral value, liquidation thresholds and debt all affect the metric.
Read in Chinese →Why oracles matter: how contracts obtain off-chain prices
Understanding automated execution also means understanding the data it relies on.
Read in Chinese →What high TVL means: double counting and asset prices
TVL is a measurement, not a synonym for returns, user numbers or solvency.
Read in Chinese →Liquid staking tokens: tradability does not remove exit risk
Staking rewards, receipt-token prices and redemption are connected but distinct.
Read in Chinese →MEV and sandwich attacks: why transaction order affects prices
While transactions wait publicly, execution order and allowed price ranges can affect outcomes.
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