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Hashed Out V8: The DeFi 101 Edition

Author

Scott Kasten
October 23, 2024

Hashed Out V8: The DeFi 101 Edition

Welcome to the eighth issue of Hashed Out, a bimonthly newsletter from Argot (www.argotagency.io) that serves as a guide for those looking to learn the basics of the web3 space. In time, our vision is to create a forum where web3 enthusiasts and newcomers can come together to explore the new digital world. Hashed Out seeks to provide you with all the resources and insights you need to go from web3 virgin to web3 virtuoso. 

As the sherpa for your expedition into the new digital great beyond, we promise to make the complicated feel simpler, connect you to the most important data and resources from the builders, researchers, and creators that are shaping web3, and respond to your needs as we grow together.

In This Issue- Table of Contents

Ok Hashers, are you ready to get started learning about Metaverses? I know I am! Let’s go!

DeFi 101: Your Guide to the Future of Finance

Estimated Read Time: 7 minutes

DeFi 101: Your Guide to the Future of Finance

Today we are journeying into a portion of the decentralized web that is more established than most of what we have already explored. Welcome to the world of DeFi, or as it's officially called, Decentralized Finance. If you've heard the term but aren’t sure what it really means (or haven’t heard anything at all), don’t worry—you're not alone. In this edition of Hashed Out, we’re diving into the basics of DeFi, explaining how it works, why it's exciting, and how it could change the way you interact with money.

At its core, DeFi is about taking the traditional financial services we use every day—like borrowing, lending, trading, and investing—and running them on blockchain technology instead of through banks or other centralized institutions. Imagine if you could use financial services like getting a loan or earning interest on your savings, but without needing a bank to act as the middleman. That’s DeFi in a nutshell. Say what? Financial services without traditional banks?

Case Study: Decentraland – A World Built by You

Estimated Read Time: 4 Minutes

If you’ve ever traded cryptocurrency on a centralized exchange like Coinbase or Binance, you know the drill: sign up, go through verification (often sharing sensitive personal information), and trust the platform to handle your funds. But what if you could trade crypto directly with other users, without needing a middleman or even an account? Enter Uniswap, a decentralized exchange (DEX) that’s become a game-changer in the world of decentralized finance (DeFi).

Editorial: Why the Metaverse Is More Than Just Hype

Estimated Read Time: 5 minutes

If you have spent much time in the web3 world you will likely have heard the saying, “the future is decentralized,” and if you’ve been paying attention to the rise of DeFi (Decentralized Finance), you know that this isn’t just some far-fetched idea. DeFi is not only here, but it's already making waves. And while it’s still in its early days, we think DeFi has the potential to redefine finance as we know it—and maybe even change the world in the process.

Why? Well, let’s break it down.

DeFi Resources

How to Use MetaMask for DeFi: A video tutorial on setting up MetaMask for DeFi engagement.

A Complete Guide to Using Uniswap

A Report From Hedra on The Trouble Spots To Watch For With DeFi

The DeFi Report from the US Commodity Cuture Trading Commission (79 pages of fun!)

Ethereum’s DeFi Overview is the Most Comprehensive You Will Find

Did you miss out on the previous issues of Hashed Out? See them all here!

THIS JUST IN! Our news image creator is not working this week, so we will have to go old school with text only links! 😞 

The Wrap

For those requiring a TLDR or just want a fast recap here it is:

  • DeFi, short for Decentralized Finance, is reshaping the financial world by offering traditional financial services like lending, borrowing, and trading without the need for banks or intermediaries. Built on blockchain technology, DeFi uses smart contracts to enable secure, automatic transactions, allowing anyone with an internet connection to participate. Key components include decentralized exchanges (DEXs), lending protocols, and stablecoins.

  • DeFi offers benefits like accessibility, transparency, and higher returns compared to traditional finance. However, it comes with risks, such as volatility, security vulnerabilities, and regulatory uncertainty. Despite these challenges, DeFi is central to the Web3 movement and has the potential to make finance more inclusive, innovative, and user-driven.

  • In this edition, we explore DeFi’s basics, its differences from traditional finance, and real-world applications, with a focus on Uniswap, a leading decentralized exchange.

A Look Ahead

Ok, it’s about time to roll the credits! Where do we go from here? A deep dive into Web3 Identity and Privacy! In our next edition we will be covering the basics of the of creating a web3 identity and the security measures you should be taking to enter teh digital future safely.

One last call, if you haven’t already hit the subscribe button below to stay in the know. We have a lot of great stuff ready to be released and we would love for you to join our community and grow with us.

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I hope that you enjoyed this edition of Hashed Out. There is much more to come and your feedback is invaluable to how we will grow. If you have questions or comments drop us a line.

Ok Hashers, that’s The Wrap. Many thanks!

(Cue awesome exit music of your choice)

Dr. Scott