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DeFi & Web3

How decentralized finance works in practice: staking and liquid staking, DEX swaps, liquidity pools, lending, airdrops and DAO votes, with the risks of each.

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DeFi & Web3BeginnerHow to track upcoming cryptocurrency airdropsNo official airdrop calendar exists, so track upcoming cryptocurrency airdrops through project channels and claim only from the official page.

Vahe Hakobyan2 min readRead guide

All DeFi & Web3 guides

Every guide in this topic, labelled by level.

What is crypto staking? title over a dark navy background with glowing emerald glass blocks joined by light lines.

DeFi & Web3BeginnerCrypto staking: what it is and how it worksStaking locks crypto to help a proof-of-stake network confirm transactions and earn rewards. In the US, rewards are generally taxable income when received.3 min read · Updated Oct 5, 2026

The title What is decentralized finance over a dark navy background with glass cubes joined by glowing green lines on the right.

DeFi & Web3BeginnerWhat is decentralized finance and how does it work?Decentralized finance is blockchain software that replaces banks with smart contracts. You connect a wallet and usually keep control of your own keys.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerHow Decentralized Exchanges Work for Your SwapsA DEX swaps crypto from your own wallet through smart contracts, with no account. You usually pay gas, approve if needed, and keep US tax records.3 min read · Updated Oct 6, 2026

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DeFi & Web3IntermediateCentralized vs decentralized exchanges: how they compareCentralized exchanges hold your crypto and require ID, while decentralized exchanges trade from your wallet through smart contracts and liquidity pools.3 min read · Updated Oct 6, 2026

What is an automated market maker? A dark navy background with glowing green liquidity pool and bars.

DeFi & Web3BeginnerWhat is an automated market maker in crypto?An automated market maker is a smart contract that trades crypto from liquidity pools. Prices follow a formula based on pool balances, with no order book.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerHow Liquidity Pools Work and What You DepositA liquidity pool is a smart contract that prices swaps with a formula, and providers earn a share of trading fees. You need both tokens and gas.3 min read · Updated Oct 6, 2026

The title 'What is impermanent loss?' over a dark navy background with two glass vessels of glowing green liquid on the right.

DeFi & Web3BeginnerImpermanent loss in crypto: what it is and whyImpermanent loss is the gap between an AMM pool position and holding the tokens. It becomes permanent when you withdraw or close the position.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerHow to Provide Liquidity on a Decentralized ExchangeYou provide liquidity by depositing paired tokens into a DEX pool to earn trading fees. You need a compatible wallet, gas token, and both tokens.3 min read · Updated Oct 6, 2026

The guide title What is a DEFI lending protocol? over a dark navy background with glowing glass, coins and a padlock on the right.

DeFi & Web3BeginnerDeFi lending protocols: how they work and the risksA DeFi lending protocol lets people lend and borrow crypto without a bank. Smart contracts set rates and can liquidate a loan that falls short.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerCrypto collateralized borrowing: how it worksCrypto collateralized borrowing locks crypto to borrow stablecoins, and a fall below the liquidation threshold can force a sale of that crypto.3 min read · Updated Oct 6, 2026

The title What is a collateral ratio in DeFi over a dark vault scene with a glass cube of glowing discs

DeFi & Web3BeginnerCollateral ratio in DeFi: what it is and why it mattersA DeFi collateral ratio is your collateral value divided by debt as a percentage. A minimum ratio set by the protocol can trigger liquidation.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerWhat Triggers Liquidation in a Lending Protocol?Liquidation in a crypto lending protocol happens when your health factor falls below one, often after collateral prices drop or debt grows steadily.3 min read · Updated Oct 6, 2026

The title What is yield farming appears over a dark desk with a glowing monitor, a hardware wallet, and a glass vault.

DeFi & Web3BeginnerWhat is yield farming and how does it work?Yield farming moves crypto between DeFi pools to earn interest, trading fees and token rewards. The returns are not fixed and rewards are taxable.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerWhere does DeFi yield come from?DeFi yield comes from borrower interest, trading fees, and token rewards. Rates float and smart contract failures can erase deposits in uninsured pools.3 min read · Updated Oct 6, 2026

A dark navy desk with a glowing emerald green smart contract crystal, glass vault, and blank tokens; the left side stays empty.

DeFi & Web3BeginnerHow to evaluate DeFi yield strategy risksTo evaluate a DeFi yield strategy, check the contract, the yield source, liquidity and exit terms before you deposit, then revoke token approvals.3 min read · Updated Oct 6, 2026

The title What is liquid staking? over glass blocks joined by glowing green light on a dark navy background.

DeFi & Web3BeginnerLiquid staking: what it is and how it worksLiquid staking lets you stake crypto and get a tradable token for your staked position. The token can be used in DeFi, and it carries some risks.3 min read · Updated Oct 6, 2026

The title What is restaking? over a dark background of glowing green server racks and light nodes.

DeFi & Web3BeginnerWhat is restaking and why does it add risk?Restaking means using crypto you already staked to secure extra networks and earn more rewards. The same stake then answers to more than one slashing rule.3 min read · Updated Oct 6, 2026

The title 'What is a liquid staking token?' over a dark background of glass blocks joined by green light on the right.

DeFi & Web3BeginnerLiquid staking tokens: what they are and how they workA liquid staking token represents crypto you have staked and stays usable in DeFi. You get it by depositing tokens into a liquid staking protocol.2 min read · Updated Oct 6, 2026

Guide title over a dark navy background with glowing green glass blocks, blank tokens and a voting box on the right.

DeFi & Web3BeginnerWhat is a decentralized autonomous organization?A DAO is a member-owned crypto group where token holders vote on proposals that code executes. Some tokens may be securities; Wyoming allows DAO LLCs.3 min read · Updated Oct 6, 2026

The title How does DAO voting work over a dark scene of a glowing emerald ballot box and floating glass cubes.

DeFi & Web3BeginnerHow DAO voting works: a step-by-step guideDAO voting lets token or membership holders decide proposals after forum discussion. You sign a vote with a compatible wallet and voting power.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerGovernance proposals: what they are and how they workA governance proposal is a formal plan token holders vote on to change a protocol. It must pass quorum, survive a timelock, and execute to take effect.3 min read · Updated Oct 6, 2026

The title What is a smart contract audit over a dark navy background with a glowing magnifying glass, glass code block, shield and padlock.

DeFi & Web3BeginnerSmart contract audit: what it checks and what it provesA smart contract audit reviews code for bugs and security flaws before launch. The report rates issues and shows fixes, but it is not a guarantee.3 min read · Updated Oct 6, 2026

The title How to read a DEFI protocol's risk disclosures over a dark desk with blank forms and a green glow.

DeFi & Web3BeginnerHow to read a DeFi protocol’s risk disclosuresYou can read DeFi risk disclosures by checking docs, audits, app UI, and governance forum, then audit dates, liquidation rules, admin keys, terms.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerProtocol treasury: what it is and who controls itA protocol treasury is an on-chain pool of funds that a crypto project's governance controls. Votes guide spending, and signers move the money.3 min read · Updated Oct 6, 2026

A dark navy desk with a steel vault, blank metal tokens and a glass jar lit by emerald green light on the right side

DeFi & Web3BeginnerHow Protocol Fees Reach Token Holders: A Step-by-Step GuideProtocol fees reach you only if the protocol shares revenue. Check for a fee switch, find the collection point, and claim or receive the payout.3 min read · Updated Oct 6, 2026

The title What is a DEFI oracle? over a dark navy scene of glowing green data bars and dials linked to glass blocks.

DeFi & Web3BeginnerWhat is a DeFi oracle and what does it do?A DeFi oracle feeds outside data into smart contracts so apps can use prices and events. It gathers and writes that data on-chain for lending apps.3 min read · Updated Oct 6, 2026

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DeFi & Web3BeginnerWhy DeFi protocols depend on price oraclesDeFi depends on price oracles because smart contracts cannot read outside prices. Oracles bring market data on-chain for loans, swaps and stablecoins.3 min read · Updated Oct 6, 2026

The title What is a flash loan over a dark navy vault with a glowing green loop from metal discs to a glass block.

DeFi & Web3BeginnerWhat Is a Flash Loan?A flash loan is crypto borrowed and repaid in one blockchain transaction; if repayment fails, the whole transaction is reversed. It needs a smart contract.3 min read · Updated Oct 6, 2026

A glowing emerald chain of light links stacked glass blocks on a dark navy background, with the title What is a flash loan attack?

DeFi & Web3BeginnerFlash loan attacks: what they are and how they workA flash loan attack uses an instant, uncollateralized loan to exploit a DeFi protocol, often by manipulating a price oracle inside one transaction.3 min read · Updated Oct 6, 2026

The title What is maximal extractable value? over a dark navy background with glowing green glass blocks joined by light lines on the right.

DeFi & Web3BeginnerMaximal extractable value: what it is and why it mattersMaximal extractable value is the extra profit from ordering transactions in a block. Searchers, builders and validators usually compete for that profit.3 min read · Updated Oct 6, 2026

Questions

Short answers to what people ask most.

Staking locks coins to help a proof-of-stake network validate blocks, in return for rewards paid in that coin. The reward rate changes with network activity and the total amount staked.

Staked coins can be locked for a period, rewards can fall, validators can be slashed for faults, and the coin's price can drop by more than the rewards pay.

You stake through a protocol and get a token, such as stETH, that represents the staked coins. It keeps earning rewards and can still be used in DeFi apps.

Decentralized finance: lending, trading and other financial services run by smart contracts on a blockchain and used from your own wallet, without a bank or broker.

Users deposit pairs of tokens into a smart contract that trades against them automatically. Depositors earn a share of swap fees but can face impermanent loss when prices move.

A decentralized autonomous organization runs a protocol or treasury through on-chain votes, usually weighted by the governance tokens each member holds.