{"product_id":"defi-and-the-future-of-finance-isbn-9781119836018","title":"DeFi and the Future of Finance","description":"\u003cp\u003e\u003cb\u003eDuring the Global Financial Crisis in 2008, our financial infrastructure failed. \u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eGovernments bailed out the very institutions that let the economy down. This episode spurred a serious rethink of our financial system. Does it make any sense that it takes two days to settle a stock transaction? Why do retailers, operating on razor thin margins, have to pay 3% for every customer credit card swipe? Why does it take two days to transfer money from a bank account to a brokerage—or any other company? Why are savings rates miniscule or negative? Why is it so difficult for entrepreneurs to get financing at traditional banks?\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eDeFi and the Future of Finance\u003c\/i\u003e, Campbell R. Harvey, Ashwin Ramachandran and Joey Santoro, introduce the new world of Decentralized Finance. The book argues that the current financial landscape is ripe for disruption and we are seeing, in real time, the reinvention of finance.\u003c\/p\u003e \u003cp\u003eThe authors provide the reader with a clear assessment of the problems with the current financial system and how DeFi solves many of these problems. The essence of DeFi is that we interact with peers—there is no brick and mortar and all of the associated costs. Savings and lending are reinvented. Trading takes place with algorithms far removed from traditional brokerages.\u003c\/p\u003e \u003cp\u003eThe book conducts a deep dive on some of the most innovative protocols such as Uniswap and Compound. Many of the companies featured in the book you might not have heard of—however, you will in the future.\u003c\/p\u003e \u003cp\u003eAs with any new technology, there are a myriad of risks and the authors carefully catalogue these risks and assess which ones can be successfully mitigated.\u003c\/p\u003e \u003cp\u003eIdeally suited for people working in any part of the finance industry as well as financial policy makers, \u003ci\u003eDeFi and the Future of Finance\u003c\/i\u003e gives readers a vision of the future. The world of finance will fundamentally be changed over the coming decade. The book enables you to become part of the disruption – not the target of the disruption.\u003c\/p\u003e \u003cp\u003e\u003cb\u003e1 Introduction 4\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eFive Key Problems of Centralized Financial Systems\u003c\/p\u003e \u003cp\u003eImplications\u003c\/p\u003e \u003cp\u003e\u003cb\u003e2 The Origins of Modern Decentralized Finance 6\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Brief History of Finance 6\u003c\/p\u003e \u003cp\u003eFintech 6\u003c\/p\u003e \u003cp\u003eBitcoin and Cryptocurrency 7\u003c\/p\u003e \u003cp\u003eEthereum and DeFi 9\u003c\/p\u003e \u003cp\u003e\u003cb\u003e3 DeFi Infrastructure 9\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eBlockchain 10\u003c\/p\u003e \u003cp\u003eCryptocurrency 10\u003c\/p\u003e \u003cp\u003eThe Smart Contract Platform 11\u003c\/p\u003e \u003cp\u003eOracles 12\u003c\/p\u003e \u003cp\u003eStablecoins 13\u003c\/p\u003e \u003cp\u003eDecentralized Applications 14\u003c\/p\u003e \u003cp\u003e\u003cb\u003e4 DeFi Primitives 14\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eTransactions 15\u003c\/p\u003e \u003cp\u003eFungible Tokens 16\u003c\/p\u003e \u003cp\u003eNonfungible Tokens 19\u003c\/p\u003e \u003cp\u003eCustody 20\u003c\/p\u003e \u003cp\u003eSupply Adjustment 20\u003c\/p\u003e \u003cp\u003eIncentives 22\u003c\/p\u003e \u003cp\u003eSwap 25\u003c\/p\u003e \u003cp\u003eCollateralized Loans 27\u003c\/p\u003e \u003cp\u003eFlash (Uncollateralized) Loans) 28\u003c\/p\u003e \u003cp\u003e\u003cb\u003e5 Problems DeFi Solves 28\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eInefficiency 29\u003c\/p\u003e \u003cp\u003eLimited Access 30\u003c\/p\u003e \u003cp\u003eOpacity 31\u003c\/p\u003e \u003cp\u003eCentralized Control 32\u003c\/p\u003e \u003cp\u003eLack of Inoperability\u003c\/p\u003e \u003cp\u003e\u003cb\u003e6 DeFi Deep Dive 34\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eCredit\/Lending 34\u003c\/p\u003e \u003cp\u003eDecentralized Exchange 49\u003c\/p\u003e \u003cp\u003eDerivatives 55\u003c\/p\u003e \u003cp\u003eTokenization 65\u003c\/p\u003e \u003cp\u003e\u003cb\u003e7 Risks 68\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eSmart Contract Risk 68\u003c\/p\u003e \u003cp\u003eGovernance Risk 70\u003c\/p\u003e \u003cp\u003eOracle Risk 71\u003c\/p\u003e \u003cp\u003eScaling Risk 72\u003c\/p\u003e \u003cp\u003eDEX Risk 73\u003c\/p\u003e \u003cp\u003eCustodial Risk 74\u003c\/p\u003e \u003cp\u003eRegulatory Risk 75\u003c\/p\u003e \u003cp\u003e\u003cb\u003e8 Conclusions: Losers and Winners 76\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003cb\u003eCAMPBELL R. HARVEY, P\u003csmall\u003eH\u003c\/small\u003eD,\u003c\/b\u003e is Distinguished Professor of Finance at Duke University and a Research Associate at the National Bureau of Economic Research. Since 2013, he has been a teaching pioneer in the blockchain space winning the UBRI Global Blockchain Educator of the Year in 2020.\u003c\/p\u003e \u003cp\u003e\u003cb\u003eASHWIN RAMACHANDRAN\u003c\/b\u003e is a General Partner at Dragonfly Capital. He is a  graduate of Duke University.   \u003c\/p\u003e\u003cp\u003e\u003cb\u003eJOEY SANTORO\u003c\/b\u003e is the founder of Fei Labs. He is a graduate of Duke University.  \u003c\/p\u003e\u003cp\u003eDuring the Global Financial Crisis in 2008, our financial infrastructure failed. Governments bailed out the very institutions that let the economy down. This episode spurred a serious rethink of our financial system. Does it make any sense that it takes two days to settle a stock transaction? Why do retailers, operating on razor thin margins, have to pay 3% for every customer credit card swipe? Why does it take two days to transfer money from a bank account to a brokerage—or any other company? Why are savings rates miniscule or negative? Why is it so difficult for entrepreneurs to get financing at traditional banks?\u003c\/p\u003e \u003cp\u003eIn \u003ci\u003eDeFi and the Future of Finance,\u003c\/i\u003e Campbell R. Harvey, Ashwin Ramachandran, and Joey Santoro, introduce the new world of Decentralized Finance. The book argues that the current financial landscape is ripe for disruption and we are seeing, in real time, the reinvention of finance.  \u003c\/p\u003e\u003cp\u003eThe authors provide the reader with a clear assessment of the problems with the current financial system and how DeFi solves many of these problems. The essence of DeFi is that we interact directly with our peers—there are no intermediaries or associated costs. Savings and lending are reinvented. Trading takes place with automated  algorithms far removed from traditional brokerages. \u003c\/p\u003e\u003cp\u003eThis book conducts a deep dive into some of the most innovative protocols in the DeFi space such as Uniswap and Compound.  \u003c\/p\u003e\u003cp\u003eAs with any new technology, there are a  myriad of risks and the authors carefully  catalog these risks and assess which ones can be successfully mitigated. \u003c\/p\u003e\u003cp\u003eIdeally suited for people working in any  part of the finance industry as well as  financial policy makers, \u003ci\u003eDeFi and the  Future of Finance\u003c\/i\u003e gives readers a vision   of the future. The world of finance will fundamentally be changed over the coming decade. This book enables you to become part of the disruption—not the target of  the disruption.  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eA powerful vision of the future democratization of finance. Details of the winners and the losers.\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\"DeFi, like the internet, will likely make financial services cheaper, faster, secure, personalized, and more. The future has yet to be written. This book provides a peek into it, and you, the reader, hold the power to create it.\"\u003cbr\u003e—\u003cb\u003eFRED EHRSAM,\u003c\/b\u003e Co-founder and Managing Partner, Paradigm; Co-founder, Coinbase\u003c\/p\u003e \u003cp\u003e\"For newcomers, DeFi is often difficult to approach and understand. The lack of general resources adds additional hurdles for beginners looking to dip their toes into the space. This book gives the reader clear, concise descriptions of some of the most popular DeFi protocols today including lending, Automated Market Makers, and more. Highly recommended.\"\u003cbr\u003e—\u003cb\u003eSTANI KULECHOV,\u003c\/b\u003e Founder and CEO, Aave\u003c\/p\u003e \u003cp\u003e\"Arguably the single best survey of decentralized finance circa mid-2021. Recommended.\"\u003cbr\u003e—\u003cb\u003eBALAJI S. SRINIVASAN,\u003c\/b\u003e Angel Investor and Entrepreneur; former General Partner, Andreessen Horowitz\u003c\/p\u003e \u003cp\u003e\"This book provides both a principled explanation of key DeFi primitives, as well as a deep-dive into the most popular DeFi projects. It's a key resource that will get you up to speed on DeFi in no time!\"\u003cbr\u003e—\u003cb\u003eIVAN BOGATYY,\u003c\/b\u003e Ethereum researcher and angel investor; former General Partner, Metastable Capital\u003c\/p\u003e \u003cp\u003eWhile cryptocurrencies such as bitcoin are frequently featured in the media, there is an underground movement that has a bull's eye on the current financial infrastructure. This financial system, including commercial banks, stock exchanges, and insurance companies, is not substantially different today than it was one hundred years ago. It is ripe for change.\u003c\/p\u003e \u003cp\u003e\u003ci\u003eDeFi and the Future of Finance\u003c\/i\u003e presents a roadmap to a new future. It is a future of financial inclusion and financial democracy. It is a future that excises the countless middle people that profit at the cost of consumers, investors and entrepreneurs and stifle economic growth. The book reimagines all basic financial functions from savings and lending to exchange. In the future, almost everything from physical assets to virtual assets will be tokenized.\u003c\/p\u003e \u003cp\u003eIdeal for those that work in the finance industry or anyone that deals with the financial infrastructure, \u003ci\u003eDeFi and the Future of Finance\u003c\/i\u003e is a powerful introduction to an exciting and constantly evolving space.\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47989034746085,"sku":"NP9781119836018","price":26.95,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781119836018.jpg?v=1761782525","url":"https:\/\/k12savings.com\/products\/defi-and-the-future-of-finance-isbn-9781119836018","provider":"K12savings","version":"1.0","type":"link"}