Decentralised finance (DeFi) 2600-FCz1DFen
The course provides a comprehensive introduction to decentralised finance (DeFi) as a core component of the contemporary digital financial ecosystem. It examines the role of DeFi within the broader financial system and compares it with traditional banking and investment services (TradFi), highlighting both competitive dynamics and complementary relationships. The course introduces the key stakeholders of the DeFi ecosystem and explains the technological foundations of decentralised systems, including blockchain and smart contracts.
Students explore fundamental technological concepts such as Proof of Work (PoW) and Proof of Stake (PoS) consensus mechanisms, including staking models. The course addresses stablecoins and token classification, as well as the role of oracles in enabling decentralised applications to access external data. Scalability and architectural solutions are also discussed, including Layer-2 solutions. Different types of wallets are presented and demonstrated (custodial and non-custodial, hot, cold, paper, multisig, etc.), and students set up MetaMask wallets.
A dedicated part of the course focuses on decentralised exchanges (DEXs) and automated market makers (AMMs). Students analyse the functioning of AMMs and participate in practical demonstrations of AMM-based DEXs, including Uniswap. The course also examines market microstructure issues specific to DeFi, such as maximal extractable value (MEV) and front-running risks, and analyses their implications for efficiency, fairness and user outcomes.
Attention is devoted to stablecoins, including their classification, use cases and key market participants, as well as their connection to fiat currencies through on-ramp and off-ramp services. The course also provides an overview of the evolving regulatory framework applicable to DeFi, including MiCA in the EU and the GENIUS Act in the United States.
Furthermore, the course explores decentralised lending protocols such as Aave and Compound. It introduces developments at the intersection of decentralised and traditional finance, including central bank digital currencies (CBDCs), tokenisation and real-world assets (RWAs). Finally, students analyse key risks in DeFi, including pump-and-dump schemes, rug pulls and other vulnerabilities inherent in open and permissionless systems.
Course coordinators
Type of course
Mode
Learning outcomes
Student on completion of the course:
In terms of knowledge:
• Knows and understands in depth the terminology related to decentralised finance in the discipline of economics and finance and in complementary disciplines (management and quality sciences, legal sciences). (K_W01)
• Knows and understands in depth the legal regulations concerning the functioning of organisations and the economy as a whole, in particular in the field of decentralised finance. (K_W04)
In terms of skills:
• Is able to apply the theory of the discipline of economics and finance as well as complementary disciplines (management and quality sciences, legal sciences) to identify, diagnose and solve problems related to financial decisions in the field of decentralised finance. (K_U01)
• Is able to correctly interpret complex technological, social, political, legal, economic and ecological processes and phenomena, and to assess their impact on financial decisions in organisations, the functioning of organisations, and the economy as a whole. (K_U02)
• Is able to independently and in teams prepare analyses, diagnoses and reports on complex and non-standard problems related to digital finance in organisations, present them clearly to diverse audiences, and conduct debates in English, using advanced information and communication tools. (K_U06)
• Is able to use a foreign language at the B2+ level of the Common European Framework of Reference for Languages and specialised terminology in the field of economics and finance, in particular for the purposes of managing decentralised finance. (K_U07)
• Is able to develop the ability to self-educate, to enhance acquired qualifications and to support others in this area. (K_U09)
In terms of social competence:
• Is ready to evaluate and take a critical approach to complex situations and phenomena related to decentralised finance in an organisation. (K_K01)
• Is ready to recognise the importance and value of scientific knowledge in addressing complex problems in the field of digital finance within organisations, as well as seek expert opinions in this process (K_K02)
• Is ready to initiate activities that benefit the community, society, or the environment, as well as undertake actions in the interest of the common good.(K_K03)
Assessment criteria
active participation in classes, interactive lecture supported by multimedia materials, group and individual work, discussion
Bibliography
Górka, J. (2025). Finanse cyfrowe: tesserakt. Wydawnictwa Uniwersytetu Warszawskiego https://doi.org/10.7172/978-83-235-7086-8.swwz.32
Gogol, K., Killer, C., Schlosser, M., Bocek, T., Stiller, B., & Tessone, C. (2024). SoK: Decentralized Finance (DeFi) – Fundamentals, taxonomy and risks (arXiv:2404.11281) [Preprint]. arXiv. https://doi.org/10.48550/arXiv.2404.11281
Harvey, C. R., Ramachandran, A., & Santoro, J. (2021). DeFi and the future of finance. Wiley.
Jones, N. (2025). Beyond payments: From centralised to decentralised and everything in between, Routledge
Keyrock, & Bitso. (2025). Stablecoin payments: The trillion dollar opportunity
[Report]. https://keyrock.com/stablecoin-payments-the-trillion-dollar-opportunity/
Wharton Blockchain and Digital Asset Project. (2026). Stablecoin toolkit: Financial and market dimensions (January 2026) [PDF]. The Wharton School, University of Pennsylvania. https://bdap.wharton.upenn.edu/wp-content/uploads/2026/01/Stablecoin-Toolkit.pdf