Dive into Ethereum's evolving ecosystem, from smart contract development to the rapidly growing DeFi sector. Learn about yield farming, liquidity pools, DEXs, and the transition to proof-of-stake with ETH 2.0.
No guides found in this category
Ethereum & DeFi FAQ
DeFi refers to financial services built on blockchain networks without traditional intermediaries like banks. It includes lending, borrowing, trading, and earning interest on crypto assets through smart contracts, offering greater accessibility and transparency.
Gas fees are payments made to process transactions on Ethereum. Fees vary based on network congestion and transaction complexity. During high demand, fees can spike significantly. Layer 2 solutions like Arbitrum and Optimism help reduce these costs.
Yield farming involves providing liquidity to DeFi protocols in exchange for rewards. Users deposit crypto assets into liquidity pools and earn fees, governance tokens, or interest. While potentially profitable, it carries risks like impermanent loss and smart contract vulnerabilities.
Smart contracts are self-executing programs stored on the blockchain that automatically enforce agreement terms when conditions are met. They eliminate intermediaries, reduce costs, and enable trustless transactions for DeFi, NFTs, and more.
