# DeFi 101: Quick Reference Cheat Sheet

## 5 Most Common DeFi Operations

### 1. Set Up a Wallet
1. Download MetaMask (browser extension) or Rainbow (mobile)
2. Create wallet → write down seed phrase on PAPER
3. NEVER enter seed phrase online. EVER.
4. Fund with ETH on Base (from exchange or bridge)
5. Add custom networks: Base, Arbitrum, Optimism

### 2. Swap Tokens on a DEX
1. Go to Uniswap or Aerodrome
2. Connect wallet
3. Select token A → token B (e.g., ETH → USDC)
4. Set slippage: 0.5-1% (higher for volatile tokens)
5. Click "Swap" → confirm in wallet
6. Wait for transaction to confirm

### 3. Provide Liquidity
1. Go to Aerodrome (or Uniswap V3)
2. Select a pair (e.g., ETH/USDC)
3. Enter amounts for both tokens (must be balanced)
4. Confirm pool & fee tier (0.3% recommended for stable pairs)
5. Approve tokens → confirm deposit
6. You get LP tokens representing your share

⚠️ Understand impermanent loss before doing this!

### 4. Lend / Supply on Aave
1. Go to app.aave.com
2. Connect wallet
3. Click "Supply" on your chosen asset (e.g., USDC)
4. Enter amount → approve → confirm
5. You start earning APY immediately
6. Withdraw anytime (no lockup for major assets)

### 5. Stake / Earn Yield
1. On staking protocols (e.g., Lido for ETH)
2. Choose asset → enter amount
3. Receive staked token (e.g., stETH)
4. Staked token grows in value vs underlying

## Key Terms
| Term | Meaning |
|------|---------|
| Gas | Transaction fee paid to validators |
| Slippage | Difference between expected and actual price |
| IL | Impermanent Loss — loss from price divergence in LP |
| APR | Annual Percentage Rate (simple, no compounding) |
| APY | Annual Percentage Yield (with compounding) |
| TVL | Total Value Locked in a protocol |
| LP | Liquidity Provider / Liquidity Pool |
| DEX | Decentralized Exchange |
| AMM | Automated Market Maker |
| Bridge | Protocol to move assets between chains |

## Safety Rules
1. **Test first**: Send $1 before $100
2. **Burner wallets**: Use separate wallets for DeFi
3. **Revoke approvals**: Use revoke.cash after transactions
4. **Check contracts**: Verify on Etherscan / BaseScan
5. **No DMs**: Support teams NEVER DM you first
6. **Audit check**: Look for audits from Trail of Bits, OpenZeppelin, Certik
7. **High APY = High risk**: 1000% APY = near-certain rug

## Best Resources
- **DefiLlama.com** — Protocol data, yields, TVL
- **L2Beat.com** — L2 security and risk analysis
- **RugDoc.io** — Yield farm risk ratings
- **Revoke.cash** — Revoke token approvals
- **DeBank.com** — Portfolio tracker for DeFi positions

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