I’m pretty young and don’t have an understanding of TradFi. So far, all i know about DeFi is that it involves lending/borrowing.
I don’t get DeFi, how to degen and make money off of it.
I’ve been messing around with UniSwap, exploring new protocols, but haven’t really put in any money yet since I have absolutely no clue what it is. Would love to join a few discord communities too which can help me on my journey. Looking for advice on this thread about how to go forward with it.
PS- I’m into NFTs and have made a small fortune flipping JPEGs, but i think DeFi is an opportunity I’m missing out on. Would appreciate any and all advice.
> I’ve been messing around with UniSwap, exploring new protocols, but haven’t really put in any money yet since I have absolutely no clue what it is.
This sounds like you’re on the right track:
1) You’re starting out with one of the foundational DeFi platforms, most other DExs are in some way just forks of UniSwap, and the project has proved it’s legitimacy through consistent reliability and well developed upgrades.
2) You’re not just aping in money before you understand how things work. This is the best approach to crypto in my opinion, never put significant money into anything if you can’t explain precisely what it does, and broadly how it does it. Stick to that rule and you’ll have a goid chance of avoiding ponzi’s, CeFi collapses, honeypots etc.
As for your next steps, I’d recommend continuing to focus on learning more about how the ecosystem works and which protocols are worth putting time into understanding. Here’s some resources that might help with that:
* [Bankless Academy](https://app.banklessacademy.com/lessons): An educational site created by the community thst sprang up from listeners to the [Bankless Podcast](https://shows.banklesshq.com/) and readers of their newsletter. They’ve got several free lessons that cover the basics of Web3 security and DeFi in general.
* [The Defiant](https://thedefiant.io/defi-101): Another crypto media company, which offers news, educational resources and a great [podcast](https://podcasts.apple.com/us/podcast/the-defiant-defi-podcast/id1512654905). Camila Russo is one of the best interviewers in the space and has loads of top developers as guests to the show, you’ll learn a lot from listening to back episodes on protocols that you’re interested in.
* [DeFi Llama](https://defillama.com/): By far the most user friendly source of information on DeFi (sorry Dune and Messari). Use the sidebar and you’ll find out almost anything you want. You can sort projects by size, by which chain tjey are on, by category of application etc etc. There’s literally so much information there that I use it almost daily, you should too!
Well, first off you have to broaden your knowledge in the crypto space and that is non negotiable. With time you would learn to explore earning streams like yield farming, liquidity mining or staking which I am doing at the moment for assets like SYLO and NEAR on Huobi for a suitable APY.
I see you have already completed the first step – Asking questions, you do that and I believe that people always willing to help you with it.
Also, welcome to crypto!
After reading up, make sure you try the protocols and bridges yourself with a small amount.
I just dabbled around, lost some money, made some money, learnt along the way. But I think nowadays there are learning materials.
Some good starting points:
Learn about past leaders and protocols in DeFi innovation, including key figures and their downfalls (Cronj, Sesta, DoKwon, Etc).
Follow builders and innovators on Twitter and learn about new protocols.
Learn about different types of stablecoins and what makes a good one, read whitepapers and GitBooks about protocols like CRV, Solidly, Compound, Aave, etc, study previous trends like OHM, Tomb, Titano.
Watch Finematics videos about understanding impermanent loss and the fundamentals of LP.
Understand MetaMask and security.
If you’re really into NFTs, then you should start thinking about NFT management protocols. If you have been paying attention, you will realize that a lot of NFT projects are being integrated into DeFi. It’ll be a major plus if you can control your assets from a single and universal account
You might find ORE ID helpful if you’re just getting started. It’s known for providing dApp users with a good user experience by making authentication processes easier.
Check out https://learn.bridges.exchange to get started 👍🏻
If you are into NFTs it might be good to get into NFT and DeFi integration. Oracles like link and Dia have been pretty active on the space to get and provide live NFT data to DeFi platforms like Zumer or NFTX.
You should go to youtube and feed on all the newbie videos, they have a lot of anime illustrations there. Loop Learn is also a good app that can help you to get all the beginners’ info.
https://youtube.com/@Finematics
Depends on what “opportunities” you’re referring to. Making money in defi is really nothing different than tradfi expect the fact that scams are essentially unregulated which allows you access to it, but also allows you access to losing money and being scammed. Be careful.
Check out Vesper.Finance
I like Justin Brahm’s videos on Youtube. Pretty simple to understand the basic of different defi protocols and defi yield strategies.
Bankless, obviously. But that’s more broad crypto.
NFTs have limited usage in DeFi, and it makes sense since they can be extremely volatile. Hard to use such highly volatile assets in DeFi sometimes. I know there are some websites where users can take out loans against their NFTs, but then you risk getting liquidated and the counter-party takes your NFT.
I’d say here’s a fundamental list of what you should understand and know how to do/use on your own, in no particular order:
1. Basic borrow/lending protocols to understand how loans work. Aave, Compound, etc.
2. Providing liquidity to pools (Uniswap, Balancer, Curve, etc) and what risks/rewards come with that.
3. Yield auto-compounders.
4. Bridges and L2’s. I’d stick only to Arbitrum, Polygon, or Optimism. Others seem to be far smaller or more primitive.
5. Defi tracking and analytics tools are crucial. Zapper, revert.finance, Defi Llama, L2 Beat, Cryptowatch correlations, coingecko, livecoinwatch, APYvision have all be useful for me.
6. BEWARE Discord and really any other types of social media when it comes to crypto (including Reddit, Twitter, and more). It is *very* easy to get phished or tricked into clicking on a malicious link.
Hope this helps and lmk if you have any other questions
If you are interested in learning more about DeFi and how to participate in the ecosystem, there are several steps you can take. First, it’s important to do your own research and learn as much as you can about the technology, the platforms, and the products and services that are available in the DeFi space. This can help you to understand how DeFi works and what opportunities are available for you to explore.
Next, you can consider joining online communities and forums, like Discord groups, where you can connect with other DeFi enthusiasts and learn from their experiences. These communities can be a great source of information, support, and advice, and can help you to stay up-to-date on the latest developments in the DeFi space.
Once you feel more comfortable and knowledgeable about DeFi, you can start experimenting with different platforms and products. This might involve putting some money into DeFi protocols, like UniSwap, and using them to trade, lend, borrow, or invest in different assets. As with any investment, it’s important to be cautious and do your own due diligence before putting any money into DeFi protocols. Make sure you understand the risks and rewards, and only invest what you are comfortable losing.
Overall, learning about DeFi and getting involved in the ecosystem can be a rewarding experience, but it’s important to take the time to educate yourself and proceed with caution. By doing your research and connecting with other DeFi enthusiasts, you can learn more about this exciting space and explore the opportunities that it has to offer.