💡 Every time you make a new type of transaction, look at the transaction data on Etherscan/Tenderly/EthTx to get a glimpse for how the protocol works.
- Assuming you only have ETH on the Ethereum chain, buy a small amount ($20 worth) of MATIC (the native token of Polygon/Matic chain). You can do that on many decentralized exchanges: uniswap, sushiswap, paraswap, etc.
- Do not swap directly using metamask: https://cryptomode.com/metamask-introduces-built-in-token-swaps-but-charges-an-exuberant-fee/
- Bridge assets to Polygon (prev. Matic); don’t forget to buy a small amount of Polygon token (native token on Polygon chain)
- What happens to your eth-chain assets?
- How does custody work? What ensures that you can convert polygon-chain assets back to eth-chain?
- Lend and borrow assets from Aave Polygon
- Be careful don’t get liquidated. At what point would your loan get liquidated? What’s the penalty?
- What are you earning on your lending? Who’s paying you?
- What are you paying/earning on your borrowing? If you are earning, who’s paying?
- Add some liquidity to a Sushi pair for farming
- Why are the farming yields higher than on Aave?
- Why are some pairs’ yields higher/lower than others?
- Claim your farmed tokens so far, trade them into your favorite token on Sushi Polygon
- What’s the trading fee?
- What was your market impact?
- What was the slippage set to? (See frontrunning MEV)
- What would happen if you had set it to 10x higher?
- What would happen if you had set it to zero?
- Now that you have lots of random assets spread around, get an overview of your portfolio on Zapper
- Try another portfolio overview service: Zerion, DeBank, other?
- Go to 1inch (ethereum chain). Input (don’t actually make the trade) a ETH → USDC trade for various amounts of ETH from 0.1 to 10000.
- [ ] How does the amount out (sell price) change as you increase the amount in? Is it linear? Why?- [ ] How does the routing change as the amount gets larger?- [ ] Also try it with a stable → stable.- [ ] Also try paraswap and matcha
- Compare and contrast other defi protocols
- e.g. MakerDao, Curve, Bancor, Gnosis, Perp, Ruler Protocol (example of a long-tail protocol)
- Stablecoins — pick one or two and understand how they work
- Find your own to analyze (please report back and share! good for ⚡ lightning talk ⚡)
- Specific discussion: 7/19 Grayscale DeFi Fund: 1 2 twitter
- What’s the methodology? Which assets didn’t make the cut?
- Specific discussion: Fei Protocol Genesis case study. Read the posts leading up to the protocol launch in April 2021: https://medium.com/fei-protocol
- Why was the launch predictably bad? What design flaw was in the genesis design?
- Potential project idea: Build a dune analytics dashboard for a defi protocol
On MEV:
- Register an ENS domain
- How does the protocol prevent front-runners from buying your domain before you do?
- Go find an example transaction(s) on the blockchain illustrating:
- An pure arbitrage (turns a profit within one transaction)
- A liquidation event
- A sandwich (Front running / back running)