DeFi from first principles
Day 9 of ~70Every mechanism derived.
Every invariant tested.
I’m rebuilding my understanding of DeFi in public: handwritten equations, working Rust implementations, property tests, and adversarial teardowns across fourteen connected modules.
Financial primitives
DeFi Accounting
Assets, shares, rounding, returns, fees, and reconciliation.
AMMs and Liquidity
Pricing, price impact, arbitrage, LP economics, and concentrated liquidity.
Lending and Credit
Interest indices, collateral, liquidations, leverage, and bad debt.
Oracles
TWAPs, confidence, staleness, manipulation, and fallback pricing.
DeFi products
Stablecoins
Peg formation, collateralized debt, redemption, auctions, and bank runs.
Vaults and Yield
NAV, strategy allocation, queues, fees, and loss realization.
Liquid Staking
Rewards, exchange rates, validator allocation, slashing, and withdrawals.
Perpetuals
Funding, margin, mark prices, liquidations, and insurance funds.
Execution and infrastructure
MEV and Microstructure
Ordering, atomic arbitrage, liquidation races, solvers, and intents.
Cross-chain DeFi
Verification, finality, relayers, retries, and replay protection.
Protocol Operations
Keepers, simulation, monitoring, upgrades, and incident response.
Adversarial and economic mastery
Smart-contract Security
Access control, precision attacks, oracle manipulation, and exploit design.
Mechanism Design
Incentives, emissions, auctions, governance, bribery, and liquidity.
Quantitative Risk
Volatility, fat tails, stress testing, Monte Carlo, and probability of ruin.