August 16, 2023

What You Will Learn in the Cardano DeFi Masterclass (Part 2)

Albert Kim


In a previous blog, we discussed the launch of EMURGO Academy’s Cardano DeFi Masterclass in response to a rapid increase in interest among users for Cardano DeFi products and services and the detailed topics students can expect to learn in Weeks 1-2 of the course. 

The Cardano DeFi Masterclass is a 6-week, 40-hour, online learning course that covers everything about the Cardano DeFi ecosystem. Presenters in the class include some of the most significant DeFi projects in the Cardano DeFi space.

In this blog, we will explain what Cardano DeFi Masterclass students can expect to learn in Weeks 3-6 of the course.

Week 3: Lending protocols and stablecoins (CDPs)

In DeFi or decentralized finance, lending services are one of its major sub-sectors in any blockchain ecosystem. Within a blockchain ecosystem, there are several DeFi-related protocols, products, and services leveraging that particular blockchain network. Within that DeFi niche is lending.

The possibility to lend any assets to an open market creates many opportunities for investors while also increasing liquidity and opportunities. 

Week 3 in the Cardano DeFi Masterclass is all about the role that borrowing and lending play in the Cardano DeFi ecosystem. The module will cover all the different platforms currently on Cardano and any future advancements in this field. Then, the subject will move on to stablecoins. 

Stablecoins play a major role in lending markets as they act as a potential haven for investors. The stablecoin is the cornerstone of any robust DeFi space and thoroughly understanding it is critical for any future DeFi participants. 

Of course, stablecoins have a very close link with loans and collateral. Most stablecoins not backed by U.S. dollar deposits are generated using Collateralized Debt Positions (CDPs). 

The module will go over this topic in much more detail and expand on these connections. 

To sum up Week 3, we have the following topics covered:

  • Indigo and synthetics assets
    • An introduction to the biggest market for synthetic assets on Cardano, the Indigo Protocol. Plus, a discussion of what are synthetic assets and their many use cases in the world of DeFi.
  • Stablecoin general discussion
    • An introduction to the subject of stablecoins. The various types of stablecoin designs, the operating stablecoins on Cardano, and future developments of this technology.
  • Collateralized Debt Positions
    • An introduction to CDPs. The module covers how CDPs are used in the DeFi ecosystem and how this type of financial instrument is used to mint stablecoins. 
  • Liquidations and stability guarantees
    • The module moves to discuss how liquidations happen and under what circumstances. Plus it covers collateral requirements to prevent liquidations and why most DeFi protocols use over-collateralization. 
  • Interactive Q&A
Week 4: Bespoke lending, arbitrage and market making

The next module (Week 4) covers other financial instruments. First, we have the idea of bespoke lending, or basically how to customize financial products to individual investors or groups. As DeFi’s power lies mainly in its ability to be versatile, this type of lending solution becomes important in the design of DeFi products. 

From there, Week 4 moves to the topic of arbitrage. In a blockchain, price differences do not only happen because of information asymmetry. The way blocks propagate through a network and how different platforms update their price feeds has an impact on the different prices shown. This creates arbitrage opportunities for DeFi users. 

The week concludes with a discussion of market making. The various DeFi platforms DEXs, lending markets, synthetic markets, etc. all need market makers to provide liquidity. This has different requirements when discussing a decentralized market which will be covered during this part. 

So, in Week 4, the course will cover the following topics:

  • Arbitrage
    • An introduction to the concept of Arbitrage. The way price discrepancies happen on a distributed ledger.
  • Market Making
    • An introduction to how market-making happens on a blockchain. The implications for the market makers and the possibilities this generates in DeFi. 
  • Impermanent Loss
    • An introduction to impermanent loss. The general concept of it, how it happens in DeFi, ways to mitigate it, and how protocols address it in their products. 
  • Interactive Q&A

Read more: What You Will Learn in Weeks 1-2 of the Cardano DeFi Masterclass

Week 5: Oracles and DAO tooling

Week 5 of the Cardano DeFi Masterclass includes the important subject of oracles which are how blockchains get information from the outside. Blockchains were initially created as closed systems. Networks like Bitcoin, Litecoin, and other first-generation ledgers do not have the ability to collect information from the outside. 

The module covers the different designs for oracles. The subject then moves to the possible attack vectors that use oracles and the weaknesses these tools can create for a smart contract. Finally, it visits all the different oracles operating on Cardano right now. 

Week 5 then moves to the subject of DAO tooling. The DAO has become a popular governance structure and it requires many additional tools to operate. From voting contracts to treasury management to identity, all play a role in the design of a DAO.

The module closes with a review of all the available DAO tool platforms on Cardano. The features that each of them offers to those looking to create a DAO and what are the developments in that space. 

So, in Week 5, the following Cardano DeFi topics are covered:

  • Oracles and their Role in DeFi
    • An introduction to the various types of oracles, how these feed information to a blockchain, and possible attack vectors. 
  • DAO Management tooling
    • An introduction to all the different types of tools to set up and manage a DAO. Then a review of the different DAO tooling platforms currently operating on Cardano. 
  • Interactive Q&A
Week 6: Beyond DeFi

Week 6 is the final week of the Cardano DeFi Masterclass course. This week closes with a discussion of topics related to DeFi but interlinks it with other subjects. It gives an overview of what else is happening in blockchain technology. Also, it looks at the implications the DeFi world has on the regulatory environment.

  • Blockchain Entrepreneurship in 2023
    • A discussion of how entrepreneurship has changed since the start of blockchain technology and how it’s applied to Cardano.
  • Gaming and Metaverse
    • An introduction to the gaming and metaverse side of blockchain technology. It looks at these ecosystems in the ways they intersect with DeFi and where there can be synergies.
  • Regulatory and Taxation Risks in DeFi Today
    • A review of the regulatory landscape since the DeFi ecosystem went mainstream. The implications for tax laws and how different governments are dealing with the DeFi world.  
  • Security Best Practices
    • An introduction to the best ways to keep crypto assets secure and how to safely navigate the dApp ecosystem on Cardano.  
  • Crypto Careers
    • A discussion of what career opportunities crypto offers. Not only for developers but also consultants, marketers, token designers, and more. 
  • Interactive Q&A

The Cardano DeFi ecosystem is in rapid expansion. The Cardano DeFi Masterclass was conceived to be a comprehensive practical review of what’s happening and how it’ll evolve from here. It’s the perfect call for those looking to enter the world of DeFi and begin to create their strategies around the Cardano ecosystem.

The Cardano DeFi Masterclass starts soon! Enroll now!

The Cardano DeFi Masterclass is set to begin soon. Enroll now using the link below to learn all you need to know about Cardano DeFi and how to start leveraging DeFi in Cardano for your benefit.

To learn more about the Cardano DeFi Masterclass and enroll now, visit


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