Chapter 4
Making Your First DeFi Transactions
IN THIS CHAPTER
Making a decentralized loan
Borrowing against your collateral
Executing a trade on a decentralized exchange
This chapter walks you through the steps to lend, borrow, and execute a trade, all without relying on a CeFi intermediary such as Coinbase (www.coinbase.com) or Gemini (www.gemini.com). Specifically, I show you how to use the Compound and Uniswap DeFi protocols developed on the Ethereum blockchain. Both protocols are available on the Ropsten Testnet in addition to the Ethereum Mainnet. I don’t dive into too many details as to how decentralized lending or borrowing (via Compound) or decentralized trading (via Uniswap) actually works. The point is to get your hands dirty with some initial DeFi experience, so I defer more detailed discussions of the underlying mechanics until Chapter 6 and Chapter 7, respectively.
To work through this chapter, you need to have installed the MetaMask browser extension (see “Setting Up Your Wallet” in Chapter 3) and set up your wallet with a funded account (see “Funding Your Account” ...
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